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Published on Friday 02 December 2022

BCP Council’s most recent finance update, published today, has outlined the further significant improvements made in the council’s financial outlook over the short and medium term.

Improvements include an increased predicted surplus of £9m at the end of 2022/23 as a direct result of the council’s proactive management of current spending implemented by Cabinet and Officers earlier in the year.

The Government’s Autumn Statement also sets out measures to support local authorities’ including:

  • More flexibility to increase council tax and the social care precept – this is the share of council tax dedicated to social care.
  • Additional social care grant funding
  • A year-long extension to the Household Support Fund

Council Leader, Drew Mellor said: "We all know it’s a tough financial environment at the moment – whether we hear about it on the news, or feel the effects on our own household budgets. So I’m really pleased with the positive improvements we’re delivering in the council’s financial position.

"This hasn’t happened by accident. It’s down to our proactive and speedy management of the budget in the face of the £55m added to the cost of running the council over the next two years due to the cost of living crisis. To give a flavour of these challenges, the Council’s utility costs such as powering our streetlights has increased by around £2m extra this year alone.

"I’m proud of the way my Cabinet and council officers are working together to devise and implement a financial strategy and am confident that these encouraging signs are set to continue.

"The spending controls we implemented earlier in the year mean we’re predicting a £9m surplus this financial year, which further helps us balance the budget next year.

"With the additional support for local authorities announced by central Government last month, this should give confidence to our residents that BCP Council is in a sound financial position for this year and next.

"This builds on the existing economies we’ve already achieved over the last few years, including £47.9 million in annual savings and efficiencies made in bringing three councils into one authority. This includes £7.1 million savings realised as we transform into the most modern and efficient council. And we know there are more savings to be made from making these changes

"Good budget management is about facing challenges head on and planning for various scenarios. We’ve not shied away from this and have been preparing for changes, even if we don’t have to make them.

"We’re now in a position where we can review some of these plans in light of our improving financial position and forecast. And this involves talking to people about what services they value via our resident’s survey that’s live at the moment, along with ideas about how we can all help to deliver services more effectively.

"I encourage everyone to fill it in – we really want to hear from you so that together we can maintain our ambitions for Bournemouth, Christchurch and Poole as a place where people want to live, work and play."

In summary, the December Financial Update it was recommended that Cabinet:

  • Recognise the continued improvement to the 2022/23 in-year position with a £9m net surplus now projected.
  • Agree the capital virement for the Housing Revenue Account as set out in paragraph 121. [A virement the moving of money from one budget to another – in this case increasing the budget for the Sterte Court Cladding project and supporting an application to the DLUHC Building Safety Fund.]
  • Acknowledges the update of the Medium-Term Financial Plan including estimates of the implications of the governments Autumn Statement.
  • Acknowledge that, based on the current financial planning assumptions and the approach to risk, that not all of the previously identified savings’ proposals may now need to be implemented in 2023/24.
  • Request Cabinet to identify up to £6.2m of currently identified 2023/24 savings that can now potentially be deferred to 2024/25.
    Cabinet notes the improvement in timescales and delivery of the Pay and Reward workstream by moving forward the implementation from the previously assumed date of April 2022 to January 2022.
  • Increase the annual investment in unearmarked reserves from £700k to £1.9m in 2023/24.
    It is RECOMMENDED that Council:
    Agree the acceptance of general fund revenue grant for adult social care as set out in paragraph 64.

The Financial Update Report is available and will be discussed at the Community and Corporate Overview and Scrutiny Committee on 12 December and the Cabinet meeting on 14 December.

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