All but essential travel and hiring has been banned by a council facing a £28m overspend this financial year.

Without making urgent savings, Warrington Council has been warned it may need to consider issuing a Section 114 notice.

These are issued by local authorities when they are effectively bankrupt.

Council leader Hans Mundry said the Labor authority was “no worse off than other councils”.

In February, Warrington Council set a budget for 2024-25 which included a £15.9m savings target.

Several factors have been identified that explain the excessive spending expected for this year.

Income from commercial properties is expected to be temporarily lower than expected, something the council attributes to planned renovation works and new leases.

Meanwhile, costs continue to rise in areas such as adult and children’s social care, special educational needs provision and tackling homelessness.

To try to save money, the city will only look to fill “essential” vacant positions. There will also be stricter controls on overtime pay and spending on agency staff.

In addition, travel may only be authorized for the “essential provision of a service or in very exceptional circumstances.”

As a result, meetings must now be held, wherever possible, remotely.

In a report, councilors were warned: “If these actions are not introduced and continue – and the budget situation continues or worsens – then the council would have to consider issuing a Section 114 notice or asking the government for support exceptional financial situation”.

Council leader Mundry said urgent action was needed to address the planned overspending.