Budget engagement 2025/26
Like all local authorities, we are facing severe financial pressures as we start to look at how we can set a balanced budget, protect services and invest in your future.
We will set our budget for 2025/26 in February next year and are starting to look at the tough decisions as well as the opportunities available to us now.
The process to set our budget starts with ideas for savings, income generation and areas for investment being considered now – and all residents have the opportunity to get involved.
Over the coming months, the council’s Overview and Scrutiny Committees (which are public meetings of elected councillors that residents are welcome to attend and ask questions of) will hold sessions to look in detail at the ideas we have so far and make recommendations on them.
As well as a chance at these sessions to look at the detailed proposals, we are seeking views on a few key questions that will help us plan for a secure financial future.
The Overview and Scrutiny meetings at which detailed budget proposals will be discussed are:
- Community and Corporate Overview and Scrutiny Committee: Tuesday October 29, 7pm
- Community and Corporate Overview and Scrutiny Committee: Tuesday November 12, 7pm
- Community and Corporate Overview and Scrutiny Committee: Tuesday December 17, 7pm
- Community and Corporate Overview and Scrutiny Committee: January 20, 2025, 7pm
Questions can be submitted in advance of these meetings via the council’s website.
In addition to the Overview and Scrutiny process, we are seeking views on how we can safeguard our financial future.
Background
Financial difficulties for many councils
Councils across the country are facing financial difficulties. Some have effectively gone bankrupt, and the number close to being bankrupt, is increasing.
We are not facing bankruptcy at this stage but it is important that residents understand the true picture. For us, the problems are caused by three key factors.
Low government funding
We receive about £30million a year less from the government than the average local authority – that works out at about £400 less per household each year.
This is due to the formula the government uses to slice up the overall funding it allocates to local authorities.
These formulas do not reflect real local needs because they do not factor in vital issues such as the number and complexity of children with Special Educational Needs.
Inflation
The rate of inflation has fallen but that is after a period of high rates, meaning costs have gone up significantly and are not coming down. High inflation caused real cost increases to the council of about £10.8million last year.
Increasing needs in the community
The problems caused by inflation are made more difficult because more people in the borough have care needs that the council must meet.
These include children with Special Educational Needs, children in care, and adults with learning difficulties or physical disabilities.
The needs residents have are also becoming more complex. The additional cost of providing these services this year is about £9.7million.
Phases
Budget engagement
Give us your views on a few key questions to help us plan for a secure financial future.