Published on Friday 24 January 2025
In the face of a challenging national financial environment, Bournemouth, Christchurch and Poole (BCP) Council is putting forward a balanced three-year budget as part of a report published today (24 January 2025).
The report also includes details of a short-term solution to the Council’s Special Educational Needs and Disability (SEND) deficit while central government work on longer-term plans to fix this national issue.
A budget to deliver for residents
BCP Council has produced a budget for the next three years that protects the most vulnerable and provides a sound, stable financial future for the Council to deliver its priorities for residents, businesses and visitors.
It focuses on providing value for money for local people, supporting the council’s financial health and ongoing sustainability and continues the approach of adopting a traditional and conventional approach to local government finances.
The Council currently spends £356m each year delivering public services to more than 400,000 residents across Bournemouth, Christchurch, and Poole. This equates to £1m per day to keep council services running.
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. This includes increases to the National Living Wage and employer National Insurance contributions. These together have added around £11million to the 2025/26 budget. While government has provided some extra funding to cover the national insurance contributions where the council is the employer, it is currently £1.9m short of the actual cost.
To meet these, and like the majority of other councils, the Council is proposing an increase of 4.99% total council tax rise (made up of 2.99% for the basic Council Tax and 2% for the social care precept). It has also identified a further £7.8m of additional annual savings to help balance the budget.
Tackling the SEND deficit
All councils are facing a growing gap between the cost of delivering the rising demand for SEND support and the funding central government provide to deliver the service. A recent National Audit Office report found that 43% of local authorities will have deficits exceeding or close to their reserves in March 2026 due to SEND services.
Alongside local MPs, BCP Council has been working with government to help them understand the issue and negotiate a solution that is in the best interest of Bournemouth, Christchurch and Poole residents.
In the meantime, to tackle the severe cashflow crisis associated with this growing SEND deficit forecast for next year, BCP Council is proposing to borrow £57.5m to fund the estimated expenditure over and above the £64.5m grant being made available by government. This borrowing may take the form of a capitalisation direction from government. The council may also apply for a capitalisation direction for the associated interest on this borrowing. This is a temporary solution being negotiated with central government until they establish a longer-term answer for all local authorities.
Council Tax
The Council’s budget 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 proposals will now undergo the Council’s scrutiny process.
The report and full appendices are available here: Welcome to BCP Council | BCP
Positive impact of transformation
Millions of pounds of savings, better and more efficient ways of working and modern office spaces are just a few of the achievements of our Transformation Programme as we strive to deliver value for money and effective services to our residents
By the end of the 2024/25 financial year, £41M in estimated one-off investment will have generated total net revenue savings of £35M. Then, every year thereafter, there will be a minimum net annual revenue saving of £21M, subject to a further, one-off investment of up to £9M in 2025/26.
Leader’s statement
Council Leader, Millie Earl, said: “Like all councils, we are facing challenges as demand for our services, especially adult social care and children’s services, increases dramatically pressures on our budget increase after years of austerity, rising inflation and increasing costs.
“We have worked hard to put forward a balanced budget that provides essential services to support the most vulnerable in our society, keeps our communities clean and safe and encourages our towns to thrive and flourish.
“We have made good progress in finding savings and changing how we work to get value for money for our residents while maintaining the Council’s financial health and sustainability.
“We’re working more efficiently as a result of our transformation programme which will have a considerable and lasting positive impact on the future financial circumstances of BCP Council.
“We listened when residents and partners wanted to take on responsibility for those services we could no longer deliver. I’m pleased that Christchurch Town Council now funds the running of Quomps Splashpark and a community safety officer for Christchurch Town Centre.”
“We’ve found alternative means to fund some Community Safety Officers as well as funding for installing renewable energy at Two Riversmeet Leisure Centre, while BH Live Active run the paddling pool at Littledown.
“The SEND deficit remains a serious national issue that is adding huge pressure to all council budgets, as well as ours. While I’m pleased that government have recognised this is an issue not of our own making and are working with us to find a temporary solution to next year’s cost. We are clear that the SEND system and the way it is funded needs fundamental revision to become sustainable in the long term.”