Investing in economic growth, keeping Council Tax bills as low as possible, and making every effort to protect essential frontline services for local people are Bath & North East Somerset Council’s three key priorities guiding the preparation of its budget for 2013/14.
The national situation is exceptionally tough with town halls having already been hit with a 28% reduction in the amount of funding they receive from the Government over the last three years. This year, the Government funding settlement due to be announced in December is particularly uncertain. This, combined with increasing demand for local services and rising costs, leaves the Council with difficult decisions as it strives to improve and protect essential frontline services for local people.
Councillor David Bellotti (Lib-Dem, Lyncombe), Cabinet Member for Community Resources, said, “Although the budget outlook is very challenging, Bath & North East Somerset Council is in a better position than many other local authorities because we have an excellent track record of balancing our budgets, made back office savings of more than £25 million over recent years, and built-up a strong level of financial reserves.
“We are likely to have to make frontline service reductions of around £3 million on average over the next three years to make our budgets balance, which is equivalent to about 1.3% of our total budget. Although this figure is quite small, there could be a significant impact on some individual services. Whilst keeping Council Tax as low as possible, we will be doing as much as possible to protect essential frontline services, particularly for the most vulnerable people in society.”
Councillor Paul Crossley (Lib-Dem, Southdown), Leader of Council, said, “Investing in economic growth to create new jobs, new homes, and new opportunities for local people is also a crucial part of our plans.
“We are investing ambitiously but sensibly in transport infrastructure like the Bath Transportation Package, community regeneration schemes like in Keynsham, Radstock, and London Road, and also home development projects like Bath Riverside so that our area continues to improve its reputation toward becoming the place for people to live, work, and visit in the UK.”
Some of the proposals for supporting economic growth in the area as part of a package of investment are:
- Improving transport infrastructure through the delivery of the Bath Transportation Package;
- Regenerating Keynsham town centre with new shops, community facilities, and improved look and feel on the High Street;
- Supporting alongside the Government and private sector the efforts to provide superfast broadband to our area;
- New affordable homes for local people through working with the Government and its agencies, including at Bath Riverside.
In addition to central cuts from Government, there are also a wide range of other factors influencing the Council’s budget.
- Demographic change; Over three years, the local increase in the number of over-65s is projected to be 6.7% and the over-85s the figure is 7.7%. This will result in extra demand for local services resulting in huge financial pressures that must be planned for now. There is also a growing number of younger people who need more places for their education;
- New legislation; Government is passing a substantial range of legislation which has a direct impact on local government, for example the new Universal Credit system and reductions in funding for Council Tax Benefit;
- Incentives for growth; Although business rates will be set nationally, half of the growth from new businesses from April 2013 will be kept by local authorities. This provides an extra incentive for the Council to invest in projects that create new private sector businesses, like the Bath City of Ideas Enterprise Area. The New Homes Bonus will also provide an opportunity for additional finance from central Government as well as the extra Council Tax raised from those homes to maintain services.
In the run-up to Christmas, the Cabinet will work with Council Officers to put forward ideas to elected councillors about how the budget could be balanced at Policy Development and Scrutiny Panels. These are only ideas – it doesn’t mean they are final. The Council Cabinet will then agree what they believe is the best way forward in early February and present this to the Council for debate on 19th February 2013. People can attend any public meeting about the budget plans that they have and give their views.
The Council values the views of local people when making decisions about our budget and the impact it has. In order to ensure that they get it right, they would like your help in answering the following questions:
- What should we do less of?
- What are your ideas for improving services at lower cost
- What services/communities should we make a priority?
You can answer these questions at www.bathnes.gov.uk/budgetview or write to them at the Resources Team, 3rd Floor, Guildhall, Bath, BA1 5AW.
