Published on Wednesday 26 October 2022
Today BCP Council’s Cabinet members acknowledged the work underway to improve its finances and develop a sustainable position as it faces the cost-of-living pressures head on.
Council Leader, Drew Mellor said:
"We’ve set out a proactive approach that will improve our financial position this year and balance our budget next year, despite the considerable challenges we face.
"The rising cost of living is predicted to add an extra £55 million to the cost of running the council over the next two financial years (22/23 and 23/24), while demand for our services increases. We’re not alone in this – all other local authorities are grappling with the same national financial challenges.
"But we’re ahead of other councils in terms of taking a proactive approach and making plans to tackle the budget pressures we’re all facing.
"We’re focussing on what measures we can take now, and by working together and challenging ourselves to find efficiencies, increase income and work differently, we are on target for a £7.8 million surplus in this financial year (22/23) which is helping us with our plan to balance the budget for next year (23/24). This will mean there are difficult decisions ahead, but as a responsible council and safety net for some of the most vulnerable in our society, we must endeavour to prioritise those who need us most.
"And we mustn’t just focus on the here and now. We are also looking further ahead to create a sustainable budget for the future – so we must retain our ambitions. This means investing £1.9 million in transforming our Children’s’ Services and continuing our plans to transform the council.
"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. In addition, we’ve realised £7.1 million savings as we transform into the most modern and efficient council. And we know there are more savings to be made from making these changes.
"Providing vibrant communities, homes and jobs means our residents want to live here, businesses want to invest and visitors want to return year after year. We’re doing this by laying the foundations for a financially sustainable council for the future."
BCP Council has been working hard to overcome the ongoing cost-of-living crisis, and in the meeting Cabinet:
- Recognised the materially improved financial position for 2022/23 which forecasts a surplus of at least £7.8 million (excluding Transformation costs) in the context of an extra £25 million in-year cost of living pressures.
- Recognised the plan to deliver a balanced budget for 2023/24.
- Authorised officers to start work to deliver the budget, including any consultation required.
- Acknowledged the intent to consider whether a capitalisation direction – the ability to borrow from central government to fund the council’s £20 million net transformation programme in 2022/23 – could be avoided by selling non-strategic assets as soon as possible.
- Agreed that current controls on expenditure remain in place to help achieve more savings this financial year.
- Cabinet also agreed to take the following recommendations to Council for approval.
- Approve £1.9 million investment in Children’s Services’ transformation in 2022/23.
- Approve the release of earmarked reserves, where appropriate, to support the medium term financial plan.
The relevant recommendations will now go before full council on 8 November 2022.
Officers will draw up delivery plans to deliver the budget including any consultation required. An update on this work will be provided at the next cabinet meeting on 23 November 2022.
The report presented to Cabinet is available to view online.