Published on Wednesday 06 December 2023
Bournemouth Christchurch and Poole (BCP) Council has published its latest finance update which details the good progress made towards delivering a sustainable financial future.
Last month the council set out its plans to deliver a balanced budget for 2024/25 despite the challenging financial climate in which it is operating.
UK councils are facing an unprecedented challenge. Soaring inflation has driven up costs and many councils are facing an increase in demand for their services, such as social care, education and highways.
BCP Council share these challenges as it works to close a £44million funding gap. The council currently spends £315.3 million each year delivering public services to more than 400,000 residents.
Most of this money is spent providing services for when people need support most and this means keeping children and vulnerable adults safe.
The report shows how the council has made significant progress identifying savings, efficiencies and income that could significantly reduce the budget gap.
But the paper identifies that mainly because of the increase in the National Living Wage announced in the Government’s autumn statement, the council still needs to find an extra £6m.
BCP Council Leader Vikki Slade said: “Quite simply BCP Council is facing an extremely challenging economic environment the like of which we’ve never experienced before.
“But this latest finance report shows that we are making real progress in delivering a balanced budget for next year, taking the tough decisions that will set us up for the future.
“The Cabinet and senior council officers have been working hard to find efficiencies and savings and raise more income. Many of those decisions will adversely affect residents in the area, but the decisions need to be taken.
“This work has identified several actions we can take to proactively manage this challenging financial environment. We have made progress but there is still much work to be done which means more tough decisions will need to be made.
“It’s important to remember that the council is the safety net for some of the most vulnerable in our society – so we must make sure we have the funds to support them when they need us most.
“And, 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.”
Urgent work will continue over the coming months to close the remaining funding gap.
As part of these plans, the council has established a voluntary redundancy scheme for staff.
Last month residents were asked to have their say on a range of future council savings via public engagement which concludes later this month. The proposals represent a small part of the budget, but the results of the consultation will help refine the relevant services.
The report also proposes to retain the Local Council Tax Support Scheme, (a benefit to help people who are on a low income or claiming certain benefits to pay their Council Tax bill).
Additionally, following a previous council decision, the paper proposes to apply a council tax premium to second homes which would take effect from April 2025, and an empty homes premium which would take effect from April 2024.
In summary, the Financial Update recommended that the BCP Council Cabinet:
- Acknowledges the further progress towards delivering a sustainable balanced budget for 2024/25
- Endorses the updated medium term financial plan position.
- Approve the continuation of the current Local Council Tax Support Scheme (LCTSS) into 2024/25
The Update also recommended that Cabinet recommend to Council:
- Further to Councils decision on 12 July 2022 to apply a council tax premium to second homes and an empty homes premium, to approve the formal determination as required by the Levelling Up and Regeneration Act 2023.