31 July (Part 1) - The outlook gets bleaker
Public Cabinet having dealt with
finances in 2020/21 and
the first couple of
months of this financial year moved on to the future.
The Leader said that the Council didn’t know what the consequences of the pandemic
would be but “the aspiration is to Build Back Better” a turn of phrase which
probably confirms that she has no more idea than anyone else. The Capitalisation
Order will only be used if absolutely necessary.
The Finance Director said that in 2022/23 a budget gap of £1·4 million was
currently assumed but likely to hit £1·9 million due to reduced fees and charges income.
One proposal for bridging the gap is to assume that staff pay awards can be reduced from 3% to 2%,
but not for managers
presumably. Additionally BexleyCo should produce its first dividend from building on Old
Farm Park. There would have to be a cut back on capital projects. Adult Social
Care, Children’s Social Care, Temporary Accommodation. Leisure Services, Waste
Services, Parking Services and the Council Tax Reduction Scheme would all be
looked at with the aim of cutting costs and raising income. Details should be made public in November.
The Council continues to lobby Government for a fairer grant settlement.
Cabinet Member Leaf added that the £1·9 million next year would rise to £8·2 in
2023/24 and £16·2 two years later.
As is often the case all the questions came from Labour. Their Leader, Councillor Stefano Borella
wanted to know about the £500,000 of efficiency savings projected for
next year. Where would they come from given that the proposals are accompanied
by the statement that they would not impact on service levels or members of the
public? The savings have not yet been stated but “magically” they are already known to
have no detrimental effect. “It is all a little bit strange.”
The Finance Director said the proposals were still being worked on.
Councillor Daniel Francis (Labour, Belvedere) remarked on the fact that there is
no reference to the new waste contact in the future financial plans. “When will
the costs be announced?”
He was told that the waste contract is not mentioned in the Medium Term Strategy
because it was written before the new waste contract was signed. The costs will
be included in the next MTFS update. Cabinet Member Leaf interjected an
unnecessary political jibe about the current bin strike. Apparently Labour
Members are “cheering” their union paymasters”.
After an hour and 20 minutes Finances are done - until next time.