BCP Council tax rise of more than five per cent on horizon

In August, it was announced that BCP Council is forecasting a £27 million overspend in this year’s budget as a result of a rising cost and demand for care services for children and adults, and a reduction in government funding.

Councillor Mike Cox, BCP Council cabinet member for finance said the council realised during the first quarter of the financial year that they were heading towards an overspend.

He said: “Departments were reminded to control spending and remain within their budgets.

“However, it wasn’t until after quarter one that we understood the full extent of the overspending, particularly in children’s services and adult social care.

“In response, we introduced red spending controls, including a vacancy freeze, additional approval requirements for purchase orders, and financial recovery measures across services.”

Cllr Cox said the council had launched ‘Star Chamber’ reviews, which challenge each department to identify savings of five, ten, or even 20 per cent. He said: “We’re in the process of going through that at the moment, to make sure that we’re squeezing every last pip.”

The financial shortfall is spread across several departments, including an £11.8 million overspend in children’s services, £8.3 million in wellbeing, £6.8 million in operations, covering seafront services and parking, and £82,000 in the resources directorate.

The council is limited in its options for raising additional funds as it relies mainly on council tax, service charges, and central government funding.

When setting its 2026/27 budget, BCP Council committed to delivering £14 million in savings, but it currently projects a shortfall.

Cllr Cox said: “At the moment, we’re forecasting around £9.5 million of savings, which is around £4 million to £5 million short of the target.”

He added that the council is “working with all departments to close that gap and improve delivery”.

Cllr Cox said that the council is not currently using reserves, as it is important to ensure that the council has a buffer to cover unforeseen financial circumstances. He said: “I’m not saying we’re not going to go into reserves, we probably will be going into reserves.

“Reserves are there for the unforeseen.

“In my opinion, some of this is unforeseen, so I suspect some of this will need to be taken into reserves.

“But we are trying to make sure that our reserves are what the recommended level is, and at the moment, we are slightly above the recommended level and we want to maintain that.

“If we did go below that, temporarily, we would be working very hard to make sure we go back above it, straight afterwards.

“Once we use reserves, we can’t use them again.”

When asked whether the council could rule out raising council tax above the 4.99 per cent maximum or increasing service charges, Cllr Cox said: “We’re not ruling anything in and we’re not ruling anything out.

“Personally, I don’t want to see an increase above five per cent, but it depends on how successful we are in delivering efficiencies and balancing the budget.”

He said the current focus is firmly on achieving savings rather than cutting services.

Cllr Cox said: “Most of our biggest spending areas are statutory services, which we’re legally required to provide, such as children’s services and adult social care.

“At the moment, we’re focusing on making sure every department is finding savings where possible, rather than deciding what services to cut.

“If cuts were ever needed, they would likely fall on non-statutory services.

“We’re going to try and protect those as much as possible because actually, we feel those non-statutory services are the fabric of our community.

“We are trying to make sure that those statutory services are delivered better and cheaper than they were before.

“There isn’t a list of proposed cuts being considered at present.

“We’ll review the position after Quarter Two and during preparations for next year’s budget.

“We have a legal obligation to set a balanced budget, and that’s going to be a challenge.”