Published on Friday 11 November 2022
Today, BCP Council’s Cabinet has published its latest Finance Update about its proactive work to deliver a sustainable financial future and tackle the challenges of the current financial environment head on.
Last month the Council set out its plans to deliver a balanced budget for the next financial year, despite facing unprecedented cost of living pressures.
The Council has committed to providing a monthly finance report to demonstrate its proactive management of the budget in a constantly changing financial environment.
Now, the Council is working through the detail of delivering those budgets savings identified last month and preparing for a sustainable financial future.
Council Leader, Drew Mellor said: "Like other local authorities across the country, as well as families and businesses, we are facing significant pressures on our budget – and we’re tackling this crisis head-on.
"We estimate the cost-of-living crisis will add an extra £55million to the cost of running the council over the next two years while demand for our services is set to increase.
"We’re taking a proactive approach to manage these unprecedented financial challenges and get the best for our residents and businesses and there may be tough decisions ahead.
"We are now on target for a £8.5 million surplus in this financial year (22/23) which is helping us with our plan to balance the budget for next year (23/24).
"Over the last few years, we’ve already achieved £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 in a moment like this means preparing for changes, even if we don’t need to make them. And that involves us talking to people now about how we could deliver services in a different way.
"Barely a day goes by without news of the challenges councils around the country are facing – from closing leisure centres to cutting services. We want to get ahead and avoid those drastic choices by exploring ways to deliver services differently with communities and other stakeholders.
"In the meantime, where we can act swiftly and deliver savings or income, or work more efficiently, we are getting on with this work. Where we need more time to explore proposals or original assumptions are challenged, we are identifying alternative proposals which can be brought forward to help deliver a balanced position.
"Either way – we are not flinching from these difficult financial challenges and are working hard to proactively manage our budget and maintain our ambitions for Bournemouth, Christchurch and Poole as a place where people want to live, work and play."
In summary, the Financial Update it was recommended that Cabinet:
- Acknowledge the update of the plan to deliver a balanced budget for 2023/24 and the testing of the implementation process.
- Recognise the continued improvement to the in-year position with a surplus of £8.5m now projected
- Acknowledges that further "below the line" proposals have been identified to replace any proposals that cannot now be delivered, or which have been deferred into a future year.
The Update also recommended that Council
- Approve the disposal of Non-Strategic Asset Sales, subject to achieving the estimated sales valuewith the decision delegated to the Leader or Deputy Leader of the Council and Chief Finance Officer.
- Approve a pooled budget arrangement in relation to section 117 Aftercare as set out in appendix B.
The Financial Update Report is available here and will be discussed at the Community and Corporate Overview and Scrutiny Committee on 18 November and the Cabinet meeting on 23 November.