Swindon Council has announced plans to cut up to £32.9m, which equates to 20% of this year's budget.
The local authority in Wiltshire is currently forecasting a £6.5m in-year budget gap and an estimated £14.1m shortfall for the following financial year (2024-2025), which is said it due to inflation and the "significant additional cost" associated with Children's Services.
Senior councillors will meet on Wednesday (December 13) to discuss Swindon Borough Council’s "extremely serious" financial position. During the meeting the cabinet will hear how the Local Government Association (LGA) has described the Council's finances as being on a "cliff edge" with a total of £32.9m in savings needing to be delivered next year, which equates to 20% of this year’s budget. So far, £18.8m in savings has been identified.
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The LGA carried out a financial health check of the local authority last month after being asked by political leaders to undertake a Finance Peer Challenge, with a specific focus on the revenue budget position and the impact of the challenges in delivering Children’s Services.
The LGA highlighted how the Council needs to bring its Children’s Services budget under control if it is going to succeed in achieving long-term financial stability. The association also recommended the Council tackle concerns over a shortfall in the amount of reserves it holds, as well as ensuring the Dedicated Schools Grant (DSG) deficit is addressed and that a Medium-Term Financial Strategy (MTFS) is developed to balance the Council’s budget beyond 2024-25.
The Peer Challenge report added that the new political and managerial leadership of the Council “are showing clear ownership of the financial position that the Council finds itself in and collectively they are committed to Swindon and to addressing the financial challenges”.
The 2024-25 budget proposals being tabled at the Cabinet meeting assume a 2.99% increase for core council tax and two per cent for the adult social care precept.
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Councillor Kevin Small, Swindon Borough Council’s Cabinet Member for Finance, said: “The LGA’s description of the Council’s financial position being on a ‘cliff edge’ may sound dramatic to some, but it is exactly the position we find ourselves in.
“We knew when we took control of the Council in May that inflation and increasing cost pressures, particularly in Children’s Services, were having a severe impact on our budget and we invited the LGA in to give us independent challenge and advice. There is no doubt we are facing an extremely serious situation and we will have to make some very tough decisions to bring this year’s budget into line and achieve the huge savings we need for next year in order to set a balanced budget.
“Getting to grips with the eyewatering costs of Children’s social care is critical if the Council is to deliver a balanced budget now and in the future. We will be working closely with senior officers to drive the necessary improvements in Children’s Services so we improve outcomes for children in our care and increase our financial resilience.”