West Berkshire Council's budget crisis worsens
The conservative-controlled council is having to find more savings
There is a £15.8m hole in West Berkshire Council’s budget forecast.
Council officers have been instructed to find additional savings of £9.2m.
If all the increases to inflation, modelled growth and investment were put into the budget, the savings requirement would increase from £6.6m to £15.8m.
The council’s executive committee reviewed its medium-term financial strategy – saying that due to financial volatility, they will be challenged to meet their budget next year.
Council leader Lynne Doherty (Con, Speen) said that a significant increase in inflation had lead to a gap in the projected budget for 2023 and a saving of £15.8m was needed.
“We are prioritising front line services, but we are in a hugely different scenario when we brought this budget through in March,” she said, adding that talks were under way with MPs and other local authorities to convince the Government to keep locally-run services from the axe.
The significant increase in the savings requirement is being driven by three main areas.
Inflation has added £4m expenditure, an increased demand in adult social care (ASC) of £9.2m, and the residual impact of Covid-19 of around £0.8m due to drop in revenue from car parking and leisure.
The council approved its mid-term financial strategy in March when inflation was 5.5 per cent. That has now more or less doubled.
At the time, adult social care numbers stood at 1,704 – with forecasts to increase to 1,763. But those figures were too low as ASC numbers in the district have reached 1,788 and are now forecast to reach 1,824 by March next year.
Joanne Stewart (Con, Tilehurst Birch Copse), portfolio holder for adult social care, told the meeting that every conversation about ASC revolved around costs.
“We must not squeeze the service providers so much that they can’t operate,” she said.
“But we are seeing high client numbers and hearing the phrase ‘sicker and quicker’ more.
“… we are having more people discharged more quickly from hospital and they have more complex needs. These figures are up by 40 per cent.”
The report also says pay increases in the 2022/23 budget were built at two per cent, but says negotiations are still ongoing with four per cent being a more realistic option.
Additional energy costs are estimated at £300,000.
The waste contracts look set to increase by £717,000.