LOSSES of more than £460,000 in the last financial year have prompted fears “bankruptcy beckons” for Salisbury City Council.

The claim was made by Councillor Charles McGrath (Con, Milford) after a full council meeting on Monday (June 24) in which councillors were told the authority made a £468,592 loss in the 2023/24 financial year.

Despite the figures, the administration said it is set to assume an “increased financial grip” to address the financial situation.

A spokesperson said it would focus on a “programme of savings, refocusing on the basics, and protecting areas which generate non-council tax income are the priorities for the coming months”.

“We are the largest parish council in England and will have to report our finances in a new and more comprehensive way; a first for Salisbury and small councils,” they said.

“As part of this increased financial grip, the new senior management team are working with elected members to navigate the fiscal challenge and make choices which deliver quality services and make financial sense on behalf of the businesses, residents and visitors of our great city.

“A programme of savings, refocusing on the basics, and protecting areas which generate non-council tax income are the priorities for the coming months.

“We will look to protect general reserves whilst wisely using increased balances in our capital programme, community infrastructure levy and section 106 contributions.

“Given this refreshed approach, the leadership team are confident of ensuring the financial sustainability of the council in the immediate and medium term.”

READ MORE: Precept parish poll date announced to decide Salisbury council tax future

Following the meeting, Cllr McGrath said “bankruptcy beckons” for the council, and he would be submitting a statement of no confidence in the administration at the council’s next full council meeting, in September.

“The council has splurged £1 million of reserves since 2021, leaving £400k,” he said.

“If the council does nothing, a Section 114 notice will have to be submitted, essentially meaning the council will be bankrupt and central government may have to intervene.

“This means that a significant precept rise (way above the 43% of 2023-24, which led to two parish meetings and a parish poll from angry residents) and severe cuts to the council’s services are on the way for next year’s budget for 2025-26.

“This is the result of the massive overspending and financial mismanagement of the council’s Labour/Lib Dem/Annie Riddle administration.

“The new Tollgate Road depot project has overspent by £120,000; unrealistic income targets have been set for income streams such as the crematorium and council events and money has been wasted on green policies such as leases on electric vehicles, still parked up at the council’s old depot in Harnham.

“This cannot go on. Leaving it until next May’s election will mean the council will punish Salisbury residents with eye-watering precept increases and a dirty, dilapidated city we won’t be proud of.

“I will be submitting a statement of no confidence in the administration at the council’s next full council meeting in September.

“While the council has no formal way of removing its leadership, I hope this will make clear residents’ frustrations with the incompetence and profligacy of the three-way administration led by Victoria Charleston, Ian Tomes and Annie Riddle.”