The council’s cabinet will look at the current year’s budget and future financial situation, including how proposed changes to government funding is likely to create a shortfall of around £18.75 million.*
At its meeting on Tuesday 23 September, the cabinet will look at the council’s current in-year spending and what is in store for the next 3 years.
The council is facing an £18.75 million budget gap over the next 3 years due to a recent central government review of local authority funding (the Fairer Funding Review 2.0) and many years of chronic underfunding for local authorities.
Rising inflation and the extra demand for essential services, like social care and special educational needs and disabilities (SEND), has also put pressure on the council’s finances. These pressures are likely to continue.
The council is not at immediate risk of bankruptcy but must continue to manage its money prudently and sensibly. Unlike some other councils, it has reserves that will help manage the transition to a new funding system. However, reserves can only be used once and £23 million is already earmarked to support the Safety Valve programme, which is addressing rising costs in SEND services.
To bridge this gap, service budgets will have to be reduced by at least 10% over the next 3 years.
The council and its cabinet won’t know the exact funding position until December, when the level of government funding is confirmed. In the meantime, the council will prepare to rise to the financial challenge as it has for many years, but difficult decisions will need to be made to make sure the budget balances and services that residents rely on can continue to be provided.
As well as planning strategically to address the future challenges, the council will continue to use a range of established techniques to manage day to day costs, including thoroughly reviewing all recruitment requests.
Cllr Mary Temperton, leader of the council, said:
“It is no secret that local government, as a sector, has been seriously underfunded for many years. The Fair Funding review disproportionately cuts money in the years ahead to areas like Bracknell Forest, which are seen as ‘well off’. We have written to government ministers to express how the Fair Funding Review 2.0 isn’t fair, and we will be left to shoulder a large funding gap while struggling to pay for increasingly costly services - services that our residents need and rely on.
“Regardless of how well we manage our budget, it is impossible to balance an £18.75 million funding gap without making some difficult and tough decisions in the future. The cabinet will be looking at our budget at its meeting next week, including the principles behind our strategic planning for the next 3 years, but we must be clear that even with the best planning and using our savings to cushion the shortfall, we will have to make some tough choices.”
More information
*The previous £14 million shortfall figure was based on underlying pressures for social care and education services alone. This updated figure recognises that other services will also experience inflationary and other cost pressures each year, that will need to be balanced by additional savings.
Read more about Bracknell Forest Council’s political leaders unanimously writing to central government to rethink the way it is proposing to spread funding across local authorities.
