Millions of pounds in savings need to be made at B&NES Council
A new report on the budget is set to go before the Cabinet next week
Rising demand for social care, inflation and growing wages mean more than £35 million needs to found by BANES Council over the next five years.
In the shorter term, £23.19m of savings will need to be found over the next two years.
These figures are out ahead of a new report that's set to go before the full council later this month - on November 9th.
The local authority say they remain focused on delivering services and supporting the most vulnerable in the community, despite a number of factors working against the figures they're now being faced with.
The report monitoring the council’s finances from April to September this year draws attention to increases in temporary accommodation costs, additional demand and costs for Home to School Transport, and increased costs coupled with reduced income in the Commercial Estate.
Additional income from Parking Services, the Roman Baths and Corporate Budgets and increased investment interest have helped to offset some of these impacts - with this new report showing £10.6m of savings have been delivered against a target of £14.4m savings and income generation plans that were included in the 2023/24 budget.
However, the report shows an overall projected overspend of £6.5m against the revised 2023/24 budget of £135.06m.
Councillor Mark Elliott, cabinet member for Resources, said: “Bath & North East Somerset Council has managed its finances very capably and cautiously, with well controlled spending and no high-risk investments. Despite that these reports show the significant pressure we face as a result of reduced government funding, the longer term impacts of Covid-19 and spiralling inflation.
“The reports estimate we will need to find £35.3m in savings over the next five years as well as generate additional income and the Medium Term Financial Strategy sets out the scope of the work that is ongoing to meet that those targets. With services that are already stretched, the efficiencies required are extremely challenging, however I want to reassure residents we have the capability and expertise to manage this situation. We remain focused on delivering services, supporting the most vulnerable in our community and delivering on the priorities we put before residents at the election in May, which they so comprehensively supported.”
The Revenue and Capital Budget Monitoring, Cash Limits and Virements – April 2023 to September 2023 report to cabinet and the Medium Term Financial Strategy 2024/25 – 2028/29 are on the council website,
The cabinet meeting on Thursday 9 November will take place at 6.30pm. You can watch live on their YouTube channel.
The council’s budget for 2024/25 will be considered at the February 8 cabinet meeting and taken to Council for a decision on February 20 when the council tax will be set.