Swindon faces a 14 million budget gap. Government support is crucial to cover costs. Reserves are not enough.
However, the council needs more money next year. They face a significant £14 million budget gap in 2025-26. Reserves are insufficient to cover that gap. Councillors need to make a balanced budget, and government financial support is crucial for achieving this.
This support may not entail extra money from the government. It may involve letting the council sell property. Then, they can use that money for daily spending under their £188 million Revenue Budget. Usually, capital receipts cannot support services.
The council’s finances currently look very shaky. Kim Chequer, the chief financial officer, shared her view on potential bankruptcy. Many councils face similar issues due to the pandemic and inflation greatly affecting budgets.
Service demands and costs also increased greatly. This especially hurt adult and children services, as well as homelessness services. The added funding was not enough to cover costs.
The council must save money yearly, and they have previously shown good results. Recent savings reached about 80 percent of targets, demonstrating their ability to meet savings targets.
Adult social care and children’s services must be provided. These required services consume almost all the funding, leaving less money for other services. They use 80% of core funds.
Consequently, there’s less room to save money elsewhere. They can’t easily cut adult and children services. Other areas like roads and libraries may suffer, making savings harder to achieve across these areas.
Chequer believes the 2025-26 budget is viable, contingent on government support. They need to deliver proposed savings quickly and tightly control spending for success.
Chequer stated the Swindon 2028 plan is key. That plan must deliver long-term services. It’s starting and has defined some 2025-26 savings, however targets lack size for the funding gap.
Work must proceed quickly on the savings. This plan is a core focus for managers. Many councils also need government aid; forty-four councils asked for support next year, as some can raise council tax to cover costs.
Councilors will set the budget on February 26. The meeting will be held on a Wednesday. They will aim to reach an approved budget at that time.