News-Consultation on proposals to balance our budget

We continue to face significant financial challenges, with our estimated budget deficit next year and across the next four years having increased. We are currently waiting to hear how much funding we will receive from the Government in its Local Government Finance Settlement (LGFS).

The total savings needed at this stage for 2025/26 to balance our budget are now estimated to be £25.6 million - around £3.8 million more than was previously forecast.

Significant savings needed

Across the next four years, the total savings required are estimated to be £69.7 million - around £5.7 million more than was previously forecast.

Despite the additional funding announced in the Government's Autumn Budget - which will see the council receive extra money for social care, the collection of rubbish, and support for homelessness - the funding for social care only covers 25 per cent of the additional £28.2 million of costs we need to find next year, to meet demand and the forecasted increases in the cost of provision.

Our budget has also been affected by the higher-than-expected increase in the National Living Wage and changes in employers' national insurance announced in the Budget, which will have a significant effect on payroll costs, social care costs and other supplier costs.

Help to close the gap

Cllr Richard Bell, our deputy leader and Cabinet member for finance, said: "Our budget estimates are still being worked on; however, the updated forecasts show a significant financial challenge to balance our books.

"The delivery of an additional £69.7 million of budget savings over the next four years will be extremely challenging and will require a fundamental rethink and significant transformational change.

"We eagerly await the finance settlement later this month and are hoping for additional funding from the proposed changes to how funding is distributed to councils. This would hopefully help close the gap as, even with these savings, at this stage we are £11 million short of balancing our budget next year.

"Wherever possible, the focus when we develop savings options continues to be to look for efficiencies, raise additional income and protect front line services. However, some changes to how we will deliver frontline services from April 2025 will need to be considered.

"Feedback from the previous rounds of consultation, including that which took place between September and November this year, showed support for our continued approach to savings.

"We're asking for further feedback on a new set of savings proposals that, if implemented, will help us to balance the budget while ensuring we can continue to deliver vital services."

New proposals 

We developed additional proposals which would save £15.8 million over the next four years, with £14.7 million of these to be delivered in 2025/26.

Making these savings would still leave a £10.9 million shortfall in 2025/26 with a £53.9 million total shortfall for 2025/26 to 2028/29 forecast.

We have currently based our budget on a 2.99 per cent increase, however, the Government has now confirmed that we will be able to apply a 4.99 per cent increase. If implemented, this could reduce our deficit for 2025/26 by around £6 million next year.

Have your say

Residents have until 5:00pm on Friday 17 January to have their say on the new savings proposals.

Feedback from the consultation will shape and finalise our budget proposals for 2025/26 and the following three years, which will be considered by Cabinet and Full Council in February.

To take part in the consultation, residents can fill in an online survey or express their interest to attend a number of Area Action Partnership (AAP) meetings between 10 December and 15 December.