Southwark Council has unveiled the contents of its budget which it says will keep finances “robust” for the next three years.
It comes amid a concerning national picture which has seen one in five council bosses say their authorities are likely to go bust in the next fifteen months.
But Cabinet Member for Finance Stephanie Cryan said thanks to “savings and efficiencies” Southwark Council will continue to remain solvent.
She said the budget would continue protecting vulnerable adults and children despite social care cuts worth £6.5 million.
The finance chief also said the budget “continues to invest in and protect mental health, leisure centres, parks and libraries”.
The final budget will be voted on by councillors after it is debated at Council Assembly in February.
Key Points
Finances are ‘absolutely robust’
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She said: “I feel confident that we are not in the Birmingham or the Thurrock territories. We are absolutely robust and we will continue to be so.”
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Cllr Cryan said this was only possible through the council’s “savings and efficiencies…over the last decade.”
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This includes spending £3.25million less on adult social care and £3.2million less on children and families’ support over the next financial year.
Government funding is ‘short-sighted’, claims council
Southwark Council has claimed the government’s £172million funding settlement is “short-sighted”.
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The government’s financial settlement will increase London boroughs’ core spending power by 5.3 per cent, according to London Councils.
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However, rising inflation and increasing demand for services mean London councils are still left with a funding shortfall of £500million, according to the capital’s local authorities.
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Since 2010, core spending power increases (roughly 25 per cent) have failed to keep up with inflation (roughly 50 per cent).
£6.5million less to be spent on Adult Social Care and Children’s Services
Southwark Council is reducing adult social care and children’s services funding by £6.5million but says “the needs of our residents are still being met”.
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£3.25million less is being spent on adult social care and £3.2million less on support for children and families
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Cllr Cryan said this is made possible by focusing more on early intervention and residential care, thereby side-stepping the costs associated with people “bed-blocking”.
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£1million less will be spent on children by reducing the number of children in care.
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Cllr Cryan said this was not a case of simply getting children off the council’s books. “Not at all… we’ve done such a lot of good work in that early prevention… that it prevents those children going into care”.
Income Generation
Southwark Council has found several ways of increasing income, including raising fees and charges and renting out council offices.
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Fee rises include the garden waste charge going from £60 to £80 per annum, raising planning fees, increasing the price of leisure services and commercial property rents.
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Southwark Council aims to raise over £1million by renting out its Tooley Street offices by 2026.
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The total budget proposals include additional income generation worth £7.6million.
Protecting key services
Cllr Cryan said the budget “continues to invest in and protect what people want”, including mental health support, cost of living support, leisure centres, libraries, parks and street cleaning.
- £11million more is being invested in Cost of Living support, bringing total investment to £35million since 2021, Cllr Cryan said.
- Cllr Cryan committed “to upgrade leisure centres and make them more energy efficient”.
Housing Revenue Account
Southwark Council’s Housing Revenue Account (HRA) – money used to repair council housing and fund major works – has a forecasted overspend of £16.7 million for 2023/24.
- The council has announced a ‘recovery plan’ which will see a 6 per cent reduction of revenue expenditure.
- Major housing projects on the Bells Gardens and Lindley estates in Peckham have already been shelved, which would have created 127 new council homes.
- Cllr Cryan blamed central government. She said the 2012 Welfare Reform Act, which meant councils had to reduce rent levels by 1 per cent each year from 2016, had “dismantled” the the HRA’s self-sustaining model.
- She said Southwark Council remained committed to building 11,000 homes by 2043.