SOLIHULL Council leader has outlined the next steps the authority is set to take over its financial situation.
Councillor Ian Courts dedicated his weekly column, published by the Council, to highlight what is being done to tackle the forecast £6.8million deficit in the budget to the end of this financial year.
The Resources and Delivering Value Scrutiny Board will be updated at a meeting on Monday (February 10) in regards to the Council’s Medium Term Financial Strategy (MTFS) covering the next three years.
Since the approval of the last MTFS a year ago, the gap between our estimated spending and income has grown from £12.584million to £33.68million.
Coun Courts said: “Like last year, the budget round has continued to be very challenging. Funding pressures are still rising across our services, against a backdrop of severely constrained resource.
“In December we heard the outcome of the provisional local government finance settlement. This allocated £218million for Solihull to spend on services. This is proportionately considerably less than many other local authorities.
“It is disappointing as it does not take into account the contrasting demographic pressures within our borough. For example, we have an ageing population alongside our significant responsibilities for children in care. Ultimately, most of this £218million goes on providing crucial services for both of these groups.”
He also said Solihull Council did not receive any funds from a £600million Recovery Grant from the Government which was designed to be used to provide Council-funded services.
Coun Courts added: “Further pressures have also arisen from a reduction in business rates income, alongside the increasing number of people presenting as homeless, which is something being seen across the country.
“The scale of the financial challenge over the next few years is such that we must continue to look at doing things differently. Both our auditors and the Chartered Institute of Public Finance and Accountancy (CIPFA) acknowledged that the situation we find ourselves in is extremely difficult, with CIPFA recommending that we make an application to government for exceptional financial support (EFS).
“They also commented that we are one of a few councils not currently charging for garden waste collections and we must take steps to address this. As agreed by Cabinet in December, we will be introducing this later in the year.
“We do recognise the pressures and financial strain that residents are already facing, therefore as part of our EFS application we have not requested the ability to raise council tax above government approved levels, albeit we have one of the lowest council tax rates in the country.”
The Council is set to find out later this month whether the EFS application has been successful.
Coun Courts said: “I am confident that our ambitious approach to our economy, our bold environmental programme, vibrant communities, passionate and committed staff and elected members and good partnerships will provide a firm footing for getting us through these uncertain times.”
