Published on Wednesday 24 January 2024
The financial environment for all UK councils in England is extremely challenging and has seen several local authorities issue s114 reports (a situation similar to a company entering administration).
BCP Council has produced a budget for the next four years that protects the most vulnerable and provides a sound, stable financial future for the Council and for the first time, adds to reserves, and doesn’t draw down £30 million from reserves.
A challenging environment
UK councils face an unprecedented challenge. For years inflation has driven up costs over and above the income Councils can raise. Councils are also facing an increase in demand for their services, such as social care and children’s services.
BCP Council has worked tirelessly to close the funding gap which included a £30m structural gap resulting from the £30m one-off use of reserves in balancing the 2023/24 budget.
The Council currently spends £309m each year delivering public services to more than 400,000 residents across Bournemouth, Christchurch, and Poole.
Approximately two thirds of this money is spent providing services for when people need support most and this means keeping children and vulnerable adults safe.
The rising demand on council services combined with increases in cost are predicted to add significantly to the cost of running services next year. For example, the rise in the National Living Wage will increase the cost of commissioned care in Adult Social Care by more than the total amount that will be generated by a 5% Council Tax increase.
Today’s budget identifies £41m of further savings, efficiencies, and additional income generation proposals which are required to set a legally balanced budget and provide the basis of a more financially sustainable council moving forward.
In autumn, residents were asked to participate in a budget consultation on potential changes to services ranging from changes to library opening hours and the opening hours of Christchurch Household Recycling Centre opening hours, to reductions in the Grounds Maintenance Service. Residents’ views on these services have played a key role in putting together the final budget proposals.
The Council is now making positive progress in identifying some of those within the community who may help deliver a sustainable future for some of the services highlighted in the consultation.
Council Leader’s statement
BCP Council Leader Vikki Slade, said: “As a responsible council, we have a legal obligation to balance our budget and provide essential services to support the most vulnerable in our society, keep our communities clean and safe, and maintain core infrastructure.
“Making the necessary savings to achieve this balanced budget has required us to make some very difficult and painful choices.
“Our budget approach has been focused on delivering value for money for residents and maintaining the council’s financial health and ongoing sustainability. The budget recognises that the Council has previously been living beyond its means.
“BCP Council is facing acute pressures caused by years of austerity, recent high inflation and the exceptional demand faced by all local authorities, and other public services, at this time.
“We have not shirked making the tough decisions you see outlined in these plans and we have acted responsibly to balance the budget in a sustainable way over 4 years.
“These proposals include reducing statutory services in adult and children’s social care, reducing early help and preventative services, cutting our Community Safety Accredited Officers, changing the way we support the Bournemouth Air Festival, reducing grass cutting and finding ways to reduce the costs of our library services.
“We know how tough these proposals will be for our residents to hear but we have no alternative. We must deliver a budget that puts the council on a sustainable financial footing and avoids serious government interventions that we have seen in other parts of the country.”
To date the Council has already delivered £82 million in savings, efficiencies, additional income and service adjustments since bringing three councils into one authority.
Some of these savings have come from the council’s transformation programme which has been working to redesign services to make them more efficient, and in turn, more cost effective to run, but other savings have come from reductions in key services as well.
Council Tax
The council's proposals provide financial security and support core service delivery based on a 4.99% total council tax rise (made up of 2.99% for the basic Council Tax and 2% for the social care precept).
In comparison to other unitary councils, BCP Council has a Council Tax level which is below the average.
The Budget report also details the ongoing pressure on the cost of providing Special Education Needs and Disability services.
The proposals will now undergo the Council’s scrutiny process.