BCP Council’s 2024/25 budget and medium term financial plan is both “brutal” and “better than expected”

HOUSEHOLDERS in Christchurch are set to see their BCP Council tax bill increase by 2.99% from April.

The plan to raise the authority’s precept by the maximum amount allowed by government was signed off by cabinet members at their latest meeting. They also voted to collect the full adult social care precept of 2% in 2024/25.

As well as approving the annual budget, which was referred to as both “brutal” and ‘not as bad as we expected”, members agreed a medium-term financial plan covering the next four years. It was based on a “critical” surplus of £2.8m by the end of the year.

BCP’s cabinet member for finance, Cllr Mike Cox, said balancing this year’s proposed budget was a “Herculean task” for officers.

The Lib Dem member for Christchurch ward said: “It’s quite clear this council waiving a two per cent (increase) on council tax two years ago was a bad mistake as it has deprived us of vital funds.

“There will be £41m of further savings and reductions in services and there’s no sugar coating that can hide the depths to which this council had to trawl to recover the legacy inherited from its previous administration.”

The cabinet heard BCP will be spending £29m more on special educational needs and disability (SEND) services in 2024/25 than is being made available by government.

An officer’s report noted: “The consequential deficit this creates in the dedicated schools grant (DSG) will mean the council is technically insolvent on 31st March 2024, as the deficit on the DSG will be greater than the total reserves held by the council, with a negative overall general fund position.”

Statutory guidance means BCP can ignore the deficit until 31st March, 2026.

Cllr Cox added: “We can do our bit and balance the general fund budget in a sustainable and responsible way but if the government continues to underfund SEND services the finances of BCP and other councils will collapse. Schools and councils cannot be made to bear the brunt of central government’s failure to fund the service.”

Cllr Stephen Bartlett, who sits on BCP’s scrutiny and overview committee, said he and fellow members discussed the budget proposals for three and a half hours, but chose not to make any recommendations.

The Independent member for Redhill and Northbourne said: “One member described the budget as brutal, another stated it was not as bad as had been expected.

“The board chose not to make any recommendations...because from the public scrutiny side of things, (finance officers) have done a good job.”

He added that committee members had expressed “critical” concern over future schools and SEND funding.

Cabinet vice-chair, Cllr Millie Earl, said she has been “really worried” about how BCP would balance its books for the year ahead.

The Lib Dem member for Newtown and Heatherlands said: “How we’ve got into this situation is quite a long story of how government funding has got us here.

“I think the comments from scrutiny are true – this budget is both brutal, but also not as bad as expected. I don’t think those ideas conflict.

“We’ve managed to strike a balance. In some areas of the budget we’ve got saving lines of between £4,000 and £8,000, but that shows how we’ve scrubbed every area of the council to make savings.”

Members voted unanimously to approve the 2024/25 budget and medium term financial plan to the full council for adoption.