B&NES Council say Government funding package fails to address 'serious challenges'
The Government announced a £64 billion package to support councils across the country in a bid to help them balance the books
Last updated 21st Jul 2024
Despite the Government announcing extra cash to councils to deal with the cost of living crisis, Bath and North East Somerset say it's not enough.
Local leaders say the 6.5% funding deal for local authorities across the country fails to address the 'serious challenges' in Bath and North East Somerset, leaving the council £187,000 worse off than expected.
BANES Council say they need to find more than £24.5 million because of 'inadequate' funding and rising demand on services.
Councillor Mark Elliott said: “This settlement has failed to address the serious challenges all councils are facing as they seek to set balanced budgets for the next year financial year.
“I am bitterly disappointed that the government has not provided urgently-needed substantial new funding for local services in 2024/25 despite the fact that like every other council we are having to dig deep to meet this challenge. There is no new money in the Secretary of State’s announcement.
"It is re-announcing money which had already been allocated. In fact, on examining the detail of the figures published on Monday, this settlement has left the council worse off than we expected by £187,000.
“Despite managing our finances carefully, with no high-risk investments, we have had to consider some really difficult choices in the savings and income package we are currently proposing and consulting on, due to the ‘perfect storm’ councils are facing.
“Added to inadequate government funding over many years we are also facing high inflation and increases in demand for services, particularly in children’s social care. This means some really difficult decisions will have to be made, and this announcement has done nothing to alleviate that.”
Announcing the 6.5% uplift for councils earlier this week, Levelling Up Secretary Michael Gove said: "Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve.
"We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up."
The council needs to find an additional £24.53m next year, because of increased costs and demands in a number of areas currently served by them, including home to school transport, as well as social care.
By law, the council must set a balanced budget, so to close the funding gap the council is consulting on a Council Tax rise of 2.99% plus an additional 2% for Adult Social Care (making a total rise of 4.99%), additional income of £6.51m and savings of £10.31m.
The council is currently consulting on its revenue budget, the ongoing ‘operational’ spend on our day-to-day services - which doesn't include infrastructure such as transport projects.
B&NES Council's proposed capital programme will be included in the budget papers being presented to cabinet and Council in February.
The consultation on B&NES Council's savings and income proposals are open until 5pm on 15 January 2024.
Read more: Below-average increase in funding for Somerset Council branded 'utterly disappointing'
Read more: £64 billion funding package for councils proposed by Government