A local authority is facing a black hole of nearly £3m amid growing financial pressures.

The latest budget forecast for Great Yarmouth Borough Council has revealed the stark figure with the authority being forced to dip into its dwindling pot of reserves to cover the deficit.

But it is feared the current approach to plug the gap is unsustainable and could lead to these funds running dry.

Eastern Daily Press: Great Yarmouth town hallGreat Yarmouth town hall (Image: Newsquest)

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Trevor Wainwright, leader of the GY Labour group, said: “The current situation is dire and is a result of more than a decade of chronic underfunding by central government.

“It is all coming back to bite us and it has now come to the point where we have to use big lumps of reserves but you can only do that once. It isn’t sustainable.”

Mr Wainwright also acknowledged the borough's lower tax base as contributing to the impact due to Great Yarmouth having less homes in Band D and above than in other areas.

Eastern Daily Press: Trevor Wainwright, leader of the Great Yarmouth Labour groupTrevor Wainwright, leader of the Great Yarmouth Labour group (Image: Newsquest)

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According to council documents, there is forecasted to be a £2.42m deficit in revenue from the borough’s housing stock this year, combined with a predicted overspend of £515,000 from the general fund budget.

The council report said the findings have “highlighted financial pressures” faced in the borough and admitted the use of reserves is not a “long-term sustainable option”.

Great Yarmouth is not unique as similar circumstances are being situation played out at councils across the country.

Rising inflation, high energy bills and government cuts have led to predictions there could be a £4.5bn funding gap for local government in 2024/2025, according to the Local Government Association.

It has left councils at a “cliff edge”, facing the prospect of having to make severe cutbacks to local services.