PLANNED savings of more than £35million in BCP Council’s budget for the next financial year have a “significant inherent risk”.

The local authority’s chief finance officer said the proposed savings for 2023/24 are almost equivalent to the entire level of assumed savings over the entirety of the past three years.

Civic leaders announced the proposed budget yesterday, with the authority set to increase core council tax and the adult social care precept by the full 4.99 per cent – the maximum amount not requiring a referendum.

In relation to the £35.1million of savings, a report by chief finance officer Adam Richens says: “Corporate directors and service directors have expressed confidence in being able to deliver each of the savings’ proposals, but there is a collective risk in managing and delivering this volume of savings in a short space of time.”

The report went on to say: “The future financial sustainability of the council continues to be vested in the success of its transformation investment programme.

"Experience from peers is that such programmes are often overly optimistic around the savings that can be delivered both in terms of value and timing.

“It is however true that the budget has been drafted based on an approach which is more traditional or conventional and the council has responded positively to the cost-of-living by way of its mitigation strategy.”

Mr Richens says there are a number of material risks:

  • Uncertainty in the current financial climate
  • Reliance on using a forecast surplus of £10.1million in 2022/23
  • Accumulating deficit on the dedicated schools grant
  • Delivery of the £35.1million savings
  • Potential external intervention from auditors and the Department for Eudcation
  • Use of one-off resources to balance the budget
  • Increasing the debt threshold to £1.334billion
  • Ability to use a government capitalisation direction
  • Urban regeneration company BCP FuturePlaces Ltd
  • Social care reforms

Council leaders are planning to invest an extra £14.6million in children’s services and an additional £25.5million in adults services.

It is planned that unearmarked reserves would rise by £1.934million and £5million will be invested in seafront infrastructure.

On council tax, the council leadership and cabinet have said they will be working on proposals between now and full  council to explore options for proposals for a lower increase of only three per cent. This would need approval from the authority's finance team with evidence of how further savings of income could be created.

Cllr Drew Mellor, leader of BCP Council, said: “The impact of the cost-of-living is being felt by households throughout Bournemouth, Christchurch and Poole, and the Council is no different.

Bournemouth Echo: Cllr Drew MellorCllr Drew Mellor (Image: BCP Council)

“This year has been an unprecedented one for all councils – but our early, proactive budget management has put us in a good place to face tomorrow’s challenges with a balanced budget and a plan to increase income, work efficiently and deliver for our residents, businesses and visitors.

“Ending the year with a budget surplus to help this work is a testament to the incredible hard work of the whole council team.”

He added: “I’m proud of the budget work we’ve done to date, but give a commitment to council tax payers that we’ll keep working to make the situation even better and more sustainable.

“That’s what residents expect and deserve.”

The budget plans will go to cabinet on February 8 and full council on February 21.