Budget

On 10 December 2024, I published a draft budget and a draft capital programme for 2025-2026.

The outlook for our finances is the most difficult it has ever been. This is due to the severe austerity imposed by the previous government and the need to spend ever greater proportions of our (reduced) budget on social care. The result is that funds for all our other services are being squeezed: after allowing for inflation, we now spend around half of what we spent in 2010. Within this, we have had to find money to respond to the recent surge in homelessness. 

Nonetheless, we have been able to prepare a plan which, if successful, would enable us to balance our budget for the next three years. This will minimise disruption to council services. 

The plan includes a package of one-off monies, cuts to some capital projects, additional borrowing and annual savings of £20m in the cost of services. There will be some painful decisions to take once we have set the budget, but we will do all we can to minimise the impact. We do not anticipate the need for a section 114 (“bankruptcy”) report. 

The capital programme includes works to schools, highways and building repairs, and grants to enable disabled people to live in their homes. It is funded from money raised by selling land, from borrowing and from grants given to us for capital schemes. By law, we cannot spend these monies on the council’s day to day services, which are funded by the separate revenue budget. 

The draft budgets will be considered by full council on 19 February 2025.