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November, 2022 Issue 67
SOUTH GLOUCESTERSHIRE COUNCIL ADVERTISING SUPPLEMENT
Council faces tough financial choices SOUTH GLOUCESTERSHIRE COUNCIL is working to address a potential budget gap of £29.3 million next year (2023/24) as the serious financial situation affecting all local authorities intensifies. The council published its draft budget last month. Global events, rising inflation and continuingly increasing demand for services mean costs are rising at an unprecedented rate. The council’s financial position has changed in a very short space of time, similar to many other local authorities across the country.
Rising costs The council has through contract negotiations saved money, such as a fixed price energy contract which will save £2 million, but this is due to end next spring. Increasing costs have put the council under growing financial pressure. Not only will energy prices rise for the council next spring, but the expected national pay offer for staff will increase the council’s spend by an extra £6.4 million each year. Rapidly growing demand on services, including adult social care, means the cost of delivering existing support is likely to rise by £8.5 million every year. Additionally, capital costs – for building roads, schools, and other one-off projects – have already risen significantly and may continue to grow if the costs of materials, for example, don’t return to more normal prices
Savings The council is in a relatively good
starting position, with additional savings of £2.9 million identified this year and £23.6 million of savings already in the pipeline, although the unprecedented costs and other pressures means there is still the potential for a £29.3 million gap in the budget. The council is now having to look for possible changes to the way it delivers some services and even whether or not it can continue to provide some services. Some changes may result in redundancies for its staff. It is also looking at how it can raise income, including by increasing Council Tax. The council is prevented by law from raising Council Tax by more than 1.99 per cent without a local referendum. A one per cent rise in Council Tax would generate £1.6 million. The council is now working to identify new ways to increase income and reduce spending and the impact those steps might have. Proposals will be presented to its Cabinet in December.
Support for those in need The council will prioritise support for people who need it most. There are two grant funds, Community Resilience Fund and Household Support Fund, available for those struggling financially. The council also continues to press for reform to special educational needs and disability support, and to fully fund the cost of care.
An urgent challenge Cabinet member for Corporate Resources, Cllr Ben Burton, said: “By
The council is in a strong financial position going into this crisis because of: • £2.3m underspend in 2021/22, saved for expected inflationary pressures this year • Early spending controls implemented for this financial year • Estimated £2m saving in fixing energy price until March 2023
View from the Leader of the Council, Cllr Toby Savage WELCOME –We’re glad to team up again with The Voice, a wonderful local business, to bring you this special edition. This time we are focusing on the council’s finances. The global economic situation means that your council faces an unprecedented challenge. Along with other local authorities, we are seeing increasing demand for services, rapidly rising prices and reduced income. Our prudent financial management has put us in a position of relative strength. But, despite significant savings, we have an increased gap in our finances for 2023/24. This means we will need to make further savings and that will involve some tough decisions. No one wants to do this and I’m acutely aware this comes when people are finding it hard to manage. It’s very important to us that you have your say. You’ll find out more in this edition and how you can find support if you’re struggling with the cost of living. Read on too to learn about our schools’ fantastic performance, how to nominate a community hero, progress on a new park and many other stories.
the start of the 2023/24 financial year, we will have already delivered £102 million of annual savings by working tirelessly to focus our resources on delivering our council plan priorities. “However, the current scale of challenge is too large and too urgent for us to be able to rely solely on this approach. We now need to find ways to cut services or change how they are delivered. We will do these in the least disruptive
and detrimental way possible to continue supporting those who need it most.” The outcome of the Government funding settlement expected later in the year could improve the financial outlook. After the council has received that updated information, it will publish detailed four-year budget proposals for further public comment. The council will make final budget decisions in February