A detailed report on council finances will be discussed this week (cabinet, Tuesday 31 October).
The agenda for which can be found on our Democracy website.
The report highlights how the current forecasted overspend for 2023/24 is being tackled head on and brings forward a series of difficult decisions and proposals to ensure a balanced budget for 2024/25 is set.
The report also highlights the strain local authorities up and down the country are under, with increased demand and pressure on adult and children's services.
Actions already taken to address the forecasted overspend include the following:
- review of recruitment of permanent and agency staff
- reducing capital investment programme
- reviewing the level of all subsidies to discretionary services
- driving real value from contract management, procurement, and commissioning activity
- opening a voluntary redundancy scheme for staff
- the deletion of three vacant Director posts
These and other actions are already helping to reduce the council's forecast deficit for the current financial year (which was forecast at £14m in September) and will have a positive impact on future budget years too. With action already underway and continuing, the forecast overspend for the end of the financial year is already being significantly reduced.
The report also proposes several tough decisions for future changes, many of which will require public consultation and further work before being formally approved by the Cabinet. This will be to tackle the current forecast budget gap of £30m across the next four years.
For a number of services, it is proposed that the council moves to a locality-based model which would see key services and buildings focussed on four areas of the city (west, west central, east central and east). This will help ensure the fairest distribution of services across the city within a reduced budget.
Cllr Tony Cox, leader of the council says: “On Tuesday, the council's cabinet will discuss the toughest set of budget choices that we have faced since becoming a unitary authority in 1998.
“These challenges come as we face a forecasted overspend in this financial year and a rising budget gaps in the years ahead. We have been and continue to take action to mitigate these pressures within the year as best we can, and the forecast overspend is reducing thanks to this strong action.
“Whilst some other councils have issued section 114 notices due to the severe financial challenges they face, Southend-on-Sea City Council is not in that position, but we are probably as close as we have even been - that means difficult decisions need to be made.
“Although the budget for 2024/25 will not be set until late February 2024, we want to show strong and decisive leadership and make some of the tough decisions on proposals as early as possible. This will enable the further work required on them to take place, we can undertake consultation where needed and implement changes from 1 April 2024 to ensure the full year effect of resultant savings.
“The old way of budget setting with all proposals coming forward in January is no good for this situation. That is why we are holding a special cabinet so that we can get on and tackle some tough choices now.
“These tough decisions include proposals to go to alternate weekly recycling and waste collections from late 2025, reviewing our library and family centre offer as part of a move to a locality model, meaning some could close, reviewing our events offer and ensuring we better recover costs, and removing subsidy from or charging more for several services.
“These are not proposals that I want to be making, but I have inherited a challenging financial situation because the council is experiencing unprecedented pressures, and we must therefore reduce our cost base whilst protecting services for those that most need them.”