Further savings needed to balance books

Posted July 2023

Further savings will need to be made to ensure we have a robust and balanced budget next February for 2024-25, despite nearly £12million savings being made in this year’s budget.

We are facing huge financial challenges, like all local government organisations across the UK, to ensure vital services are protected and our residents receive the help and support they need to keep their families safe.

The cost of living crisis is hitting families, but it is also having a detrimental effect on local councils, as well as local businesses. The long term impact of COVID-19 and the cost of living crisis has put unprecedented pressure on our vital services.

Increases in demand for statutory services for residents, including those with special education needs and disabilities, have also left us struggling financially. Energy costs are also increasing for the council and this, together with rise in inflation, has resulted in the cost of providing council services to rise significantly.

£12million saving made in this year's budget

When the budget was agreed at the Council’s executive meeting in February, we identified almost £12million of service efficiencies that needed to be made this financial year. This helped to limit the impact on Council Tax payers, but low government funding, at a time when costs are rising significantly, made it impossible to avoid Council Tax increases.

We continue to receive the least funding from central government per resident of any unitary authority in the country – £30million per year less than if it was funded in the same way as the average unitary authority – at a time when residents need support the most.

Driving further efficiencies

To help drive further efficiencies, we set up an organisational foundation programme (OFP) to provide a coordinated and strategic approach to generating the cost reductions needed.

This programme includes a focus on its workforce, contracts, procurement and assets. As part of OFP, steps have been made to reduce running costs at the council offices at Shute End.

With many staff continuing to split their week between the office and online working from home, staff were relocated to the bottom two floors of the building in Wokingham town centre allowing us to consider various options on what to do with the top two floors of the building while saving on both heating and lighting, helping to reduce our uncapped energy bill.

Ensuring we remain financially sound

This year’s robust budget was designed to ensure the council remains financially sound, that vital services are protected and residents receive the help and support they need to keep their families safe. 

Further savings will need to be made to ensure we are able to do the same again next year.

Considerable work has been undertaken already by our budget managers, senior officers and corporate leadership team working with executive members to consider alternative and additional ways to bridge the revenue budget gap.

The cost of everything has continued to rise, not only for residents and local businesses, but also for the council. Wokingham Borough has not received its fair share of funding from central government for many years and these decisions have put a strain on the council’s finances which effects all of us – putting all the responsibility on local government and local taxpayers.

We are still committed to making the tough decisions to ensure we can fulfil our commitment to continue to keep all our residents safe and our vital council services protected. We will make savings wherever possible to fulfil our commitment. Setting the council’s budget is a complex process especially with inadequate funding, increasing costs and growing financial pressures but we are committed to ensuring this council is working efficiently as possible across all departments while continuing to keep all our residents safe.

Further information about all council services can be found at www.wokingham.gov.uk