Following a discussion, Cabinet has referred the budget savings proposals included in the report Cabinet agenda (item 14 – Budget Savings Proposals 2025 to 2026 to 2029 to 2030) to our Improvement and Scrutiny Committee – Resources, which will consider them when it meets on Monday 13 January 2025.
The budget savings proposals are included in the report which details our financial position and could, if agreed, save millions of pounds and support the setting of a balanced budget for 2025 to 2026.
In common with authorities across the country, we continue to face budgetary pressures far greater than experienced before, due to factors beyond our control. These include pay and price inflation and rising demand for services, particularly in adults and children’s social care.
As well as a current forecast overspend for 2024 to 2025 (the current financial year) of £28.1m, we have a predicted shortfall in our budget for the year ahead (2025 to 2026) of £18.6 million which has resulted in the new savings proposals being put forward.
We are legally required to set a balanced budget in advance of the beginning of each financial year.
The new savings proposals follow a significant savings plan for 2024 to 2025 which is on track to achieve its target of £31.9m by the end of this financial year (31 March 2025) and will continue to deliver a further £18.9 million of savings in 2025 to 2026.
Council Leader Councillor Barry Lewis said:
“We have been very open about the pressures on our budget and despite a lot of hard work these pressures continue to mount due to costs and demand which are simply beyond our control.
“However, the solid savings plan we put in place at the beginning of 2024 is on track to achieve its target and we are in a better position now than we were this time last year.
“We are continuing to build on the hard work and detailed planning to ensure we set a balanced budget for the year ahead and we are confident the new savings proposals will contribute to ensuring our finances are on track.
“We continue to focus on the most effective ways we can identify and deliver savings, as well as looking at ways to reduce the increasing pressures on our budget. This includes looking closely at changing the way we work overall as a council and fundamentally changing our operating model, striving to work as One Council and bringing functions together as well as challenging all expenditure.
“As with all councils, huge pressures continue around adults and children’s social care but we are doing all we can to ensure those who need our support will continue to receive it in future.”
Measures currently in place to bring expenditure under control include:
- vacancy management including pausing recruitment where appropriate
- reviewing vacant posts and freezing or deleting them where appropriate
- reviewing the use of agency workers to reduce costs
- reducing expenditure on procurement to only spend money on essential areas
A cross-party Budget Commission has also been set up and a review of our whole operating model is underway to ensure we are working as effectively as we can and are considering all available opportunities to reduce costs through rationalisation and improvement.
Deputy Leader and Cabinet Member for Corporate Services and Budget, Councillor Simon Spencer, said:
“Challenging times remain for this authority and councils across the country and we are working hard to find ways to tackle the pressures which continue to mount on our vital services.
“We remain confident that our careful planning and hard work across all departments will ensure we balance the books. Every penny spent is being scrutinised and we are developing new ways of working that will ensure we are operating in the most efficient and effective way possible.”
Following its meeting on 13 January, the Improvement and Scrutiny Committee - Resources will provide feedback to Cabinet on the report which includes the budget savings proposals, which will be incorporated in the budget-setting report to be considered by Cabinet at its meeting on Thursday 30 January.
The budget will then be considered and set by Full Council when it meets on Wednesday 12 February.
Many of the new savings proposals, if it is agreed for them to go forward, will be subject to further Cabinet reports and then followed by appropriate public engagement or public consultation before any final decisions are made.