“We are close to the edge of the cliff, but we are not yet looking over it”.

That was the warning from the man in charge of Swindon Borough Council's finances as Nottingham City Council has declared itself essentially bankrupt this week.

It followed in the footsteps of Birmingham City, Croydon - for the third time in two years, -Thurrock and a string of others,

And it is no longer in the realms of the inconceivable that Swindon could join them.

Councillor Kevin Small is working on the first Labour administration for 20 years budget for next year.

And the cabinet member for finance's facts and figures paint a worrying picture.

The council is legally obliged to balance this year’s budget - not spend more than it said it would - and at the current rate of spending, £10m has to be saved by the end of March.

It also has to set a balanced budget for 2024-25 – making sure it has enough money to meet its spending commitments - and just a month before the first draft budget report is due to cabinet council officers are looking at how to save £16m from that budget.

The trouble is that pressures are coming on to the council from all angles.

One is inflation. Cllr Small said: “Pay inflation has added £17m to the budget, and added to other cost inflation, that goes up to £44.6m.

“That means, if we do exactly the same work as we have done this year, it would cost us £44m extra next year. And we don’t have that sort of money.”

Another really significant pressure on the budget are the combined statutory duties - meaning the council must, in law, fulfil these functions - of funding adult social care and services for children such as social work, care and fostering.

Cllr Small said: “Our revenue budget for this financial year is £166m. About £136m is spent on adults and children’s services – that’s about 82 per cent of the total.

“Everything else the council does – collecting rubbish, running the libraries, mending the roads, looking after parks and gardens, and everything else has to come out of the remining £30m. And the cuts we are having to make in next year's budget because of these pressures will largely come from that £30m for everything, it’s probably down to £25m in next year’s budget.”

Although adults' care takes up most of the spending, it’s increasing, and increasingly complex demands on children’s services which is really driving the crisis, not just for Swindon but for authorities across the country.

Council leader Jim Robbins said: “The biggest issue is placement for our looked-after children. We don’t have enough foster families in Swindon and profit-making venture capitalists know we have to pay whatever they charge for a place in a home for a child.

“I don’t think they should be allowed to make such huge profits from money that has to be spent on vulnerable children.

“That’s why we’ve put a lot into recruiting more foster parents, we’ve increased the allowances paid, and have a campaign running.  We are on track to meet our target for recruitment this year, but there’s training, arranging placements, it doesn’t happen overnight.”

There is some hope, however. Cllr Robbins said: “We’re going to be opening a new family centre in Penhill next year and we can do more to strengthen our efforts to get to net zero and reduce inequality.”

But Cllr Small pointed out: “The recent autumn statement by the Chancellor didn’t do anything for local government. He was reported to have more another £26billion to play with because of lower inflation. If he’d given just £10bn of that to local government, Swindon’s share would have been £33m – that would solve all our problems.”

A budget report will be brought to cabinet on Wednesday December 13.