B&NES Council reveals savings proposals ahead of February’s Budget

Having faced criticism by other parties in the lead-up to Christmas over its silence on budget plans, due to be decided in February, Bath and North East Somerset Council has this week published a series of proposals to achieve the £49 million of savings needed to balance its books over the next four years. This is in addition to the £33 million the local authority has needed to save since 2012.

The proposed savings come as the Council faces the biggest financial squeeze in its history, with continued reductions in Government funding (from around £20 million currently to almost nothing by 2020), and complex challenges, such as the rapid growth in the number of vulnerable and older people needing social care support.

It has identified £41 million worth of potential savings so far; including £12 million already being delivered in the current financial year, despite pressures in the priority area of Children’s Services. However, more is still required, and the Council says it will have to take some tough decisions to balance its budget.

Councillor Tim Warren (Conservative, Mendip), Leader of B&NES Council, said: “This is an unprecedented challenge, with £49 million of savings needed by 2019/20 – by which time, the Council will need to be almost self-sufficient.

“Funding to local government has been falling since 2010, while the cost of delivering services continues to rise. Demand for a range of services is also rising quickly, as our population grows and changes, and this puts pressure on resources.

“Our savings proposals will ensure that the Council continues to live within its means, whilst protecting frontline services as far as possible, and continuing to invest in important local priorities – such as affordable housing, transport improvements and economic growth to create good, local jobs.”

The scale of the financial challenge means that it will not be possible to deliver all the savings required through efficiency and income alone – meaning some fundamental changes will be required to the way in which a range of services are delivered.

The Council aims to commission services where it can, for example, it is looking to independent partners to operate two Early Years Nurseries that it currently runs. It will be generating additional income through investing in new, commercial property and other projects, such as its new housing company, which will deliver additional local homes and a new energy tariff that will also reduce bills for local people.

The Council will also be responding to Government policy changes, such as receiving a further £2.5 million as a result of the Government’s pilot Business Rate retention scheme and the potential for £500,000 from the Government’s New Homes Bonus scheme, which rewards councils for increased building.

There are also proposals to continue a 2% Council Tax precept for Adult Social Care, which will raise an additional £1.5 million a year to help fund unavoidable demographic and inflationary cost pressures, such as more elderly people needing care and an increase in the National Living Wage. Whilst a rise in Council Tax has not yet been decided, and will not be until February, there are suggestions that there could be an annual 2% increase, going up by 6% over the next three years.

Councillor Charles Gerrish (Conservative, Keynsham North), Cabinet Member for Finance and Efficiency, said: “Over the past year, we have undertaken a thorough review of all spending in order to meet the biggest financial challenge in the Council’s history. We have left no stone unturned in our efforts to increase efficiency, find new income streams, and ensure we are as lean as we can be.

“However, we won’t be able to avoid some very difficult decisions over the level of funding for some services, and there will need to be a fundamental re-shaping of the way some services are delivered to ensure the Council balances its books and lives within its means.

“Wherever possible, we will be seeking to work with local communities, parish councils, public sector partners and other local organisations to deliver services in new and cost-effective ways.”

Over the coming weeks, the individual Directorate Plans, including the savings proposals, will be presented to the Council’s Policy Development and Scrutiny Panels, with the proposed budget to be considered at the Cabinet meeting on Wednesday, 1st February. The Council’s final budget will then be considered by Councillors at a Full Council meeting on Tuesday, 14th February. The plans, including the full list of savings proposals, can be found at: https://democracy.bathnes.gov.uk/ecCatDisplay.aspx?sch=doc&cat=13506

Some of the proposals put forward by the Cabinet include £2.2 million from new acquisitions and new income from the local housing and development company, £2 million by raising additional income from heritage and economic growth, and £2.7 million saved from changing the way the Council makes provision to repay borrowings on capital items. It estimates £550,000 saved from departmental underspends and back office efficiencies, £500,000 secured from lower interest rates and capital savings, and £600,000 by a review of the management and support arrangements. £2.8 million will also be saved by digitally transforming the Customer Services Department.

A £500,000 saving has also been identified for children and young people’s services, transferring responsibilities to academies and other groups; £500,000 by ‘encouraging and enabling’ local community groups to provide suppplementary services for young people, and a further £100,000 by transferring some of the Children’s Centre buildings to community organisations.

£100,000 is expected to be saved through a Parks review, £120,000 through an increase in bereavement services charges and £1.5 million by redesigning transport options. £5.6 million of cost increases are also expected to be avoided as part of a redesign of community health and care.

To put the required savings into context, the Council’s gross revenue spend for 2016/17 is £246.6 million (excluding schools expenditure).Local Lib Dems have reacted to the news, expressing fears for services in the area. Councillor Andrew Furse (Kingsmead), the Lib Dem spokesperson on Finance for B&NES, commented: “These cuts are coming down from a Conservative Government and are being implemented by a Conservative-run Council. They will decimate services upon which B&NES' residents rely, such as libraries, children’s centres and waste collections. With more Council Tax rises expected, local people will continue to pay more for less.”