With the local government settlement published on December 20, Southwark Council has had just over a month to plan its finances for the next year. It’s a monumental task, made more difficult by inflationary pressures.
The good news is Southwark has balanced the books. Avoiding bankruptcy may not sound like an achievement, but some local authorities are still in the red.
Croydon, for example, is increasing its council tax by a staggering 15 per cent, after estimating it would need to reduce spending by £130m to balance the budget. Meanwhile, Thurrock and Slough councils have also had requests approved to raise council tax by 10 per cent.
The bad news is that Southwark has had to make significant cuts to keep itself solvent. Most concerning are the £600,000 cut to respite care, the £1 million less awarded to temporary accommodation emergencies and the reduced funding for children’s and families’ services.
This isn’t the budget’s final iteration and councillors still have a chance to submit amendments at Council Assembly next month. If the Lib Dems and Labour put their heads together and come up with some creative ways of generating income, it could help to soften the blow of a tricky budget.
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