The recently announced funding increase for English local authorities has left Bath & North East Somerset Council facing unexpected financial challenges, with a shortfall of £187,000, according to council leaders.
Secretary of State for Levelling Up, Housing and Communities Michael Gove’s announcement of a 6.5% funding increase for councils came after repeated warnings about the severe financial difficulties encountered by local authorities across the country.
In response, Councillor Mark Elliott, cabinet member for resources, expressed dissatisfaction, stating that the settlement fails to address the significant cost and demand pressures faced by the authority and will result in B&NES being worse off than anticipated.
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Elliott expressed disappointment with the lack of substantial new funding for local services in 2024/25, despite the pressing financial challenges faced by the council. He emphasized the absence of additional funds in the announcement, which he described as a reiteration of previously allocated money. Upon analyzing the published figures, the council discovered that the settlement has left them £187,000 worse off than expected.
The council, mandated to set a balanced budget, is confronted with the need to find an additional £24.53 million for the upcoming year, primarily to address escalated costs and demands, such as in home-to-school transport. To close this funding gap, the council is considering a 2.99% Council Tax rise along with an additional 2% for Adult Social Care, totalling a potential rise of 4.99%. Furthermore, they are exploring additional income of £6.51 million and targeted savings of £10.31 million.
With high inflation and increased demand for services, particularly in children’s social care, the council faces the prospect of making challenging decisions. The situation is compounded by years of inadequate government funding. As a result, the council is conducting a budget consultation, seeking input on revenue budget and addressing ongoing operational spending on day-to-day services.
The council emphasized that the consultation doesn’t cover capital schemes but highlighted their commitment to presenting the proposed capital programme as part of the budget papers in February.
To review the savings and income proposals and participate in the consultation, visit the budget consultation pages on the council’s website. The consultation period runs from December 15th, 2023, to January 15th, 2024.