Councillor Richard Jackson, Chairman of the Finance and Major Contracts Committee at Nottinghamshire County Council reveals the financial pressures facing Councils in the light of the coronavirus pandemic.
“Despite the pressures of recent months, I am confident Nottinghamshire will balance its budget this year and will be able to set a balanced budget next year which is a legal requirement for all councils.
This year has been a year like no other for many people working in our frontline services.
Care home staff, carers, social workers, teachers, youth workers and hundreds of other staff the length and breadth of the county have gone above and beyond their normal daily routines to keep residents safe and children at school. They richly deserve our thanks and gratitude.
As a Council the cost of COVID is expected to be £66.8 million during this challenging financial year, and that’s after receiving £47.1 million from the Government in general financial packages.
As a result, we will have to look at making millions of pounds of savings over the next few years as we’re facing a £28.3 million budget deficit by 2023 – 24.
But looking ahead, I believe the situation is better than first thought, albeit a serious one still.
As a Council and through the County Council Network and Local Government Association, we’ve been lobbying Government throughout the pandemic for additional funding and there is real recognition from Whitehall of the financial pressures we’re facing.
I’m proud of the fact that Nottinghamshire will be one of only 20 per cent of councils across England able to set a balanced budget this year, a result of good financial management over the last four years. We were in a better position than most before the pandemic so were in a better place to weather it.
This comes after a sustained period of austerity, in which funding to councils has been significantly reduced, and much of the easier cost-saving measures have already been taken.
As I’ve said we’re looking at £66.8 million in total of additional costs due to COVID, we’ve had £47.1 million in general funding packages, additional financial support targeting specific communities, we’ve obviously used our reserves, we’ve looked at everything else we’re doing and generated underspend elsewhere.
Looking forward to next year (financial year 2021-22), the latest assessment of our budget shows a funding shortfall even when we consider it includes an assumption of a modest council tax increase (1.99 percent).
The following year is where we will need to continue to lobby the Government for funding as additional costs are going to carry on for the next 12 months at least.
We’re submitting our (COVID cost) returns to the Government monthly, and I think it is being listened to.
Last week, the Chancellor’s Spending Review announcement also signalled we can continue to invest in our Social Care Services, but this would require us to consider an increase in the Adult Social Care Precept. Our current plans indicate we will invest an additional £24.3 million in our Care Services next year.
We’ve found innovative ways of saving the county council money in the past, and we’ll continue doing that in the future.
I’m pleased we’ve been able to safeguard services this financial year and there are no significant service reductions planned for the next financial year.
No one knows how long the crisis is going to be with us, so we’ve looked at our ways of working over the last nine months which will generate significant savings.
Plans like Investing in Nottinghamshire, a programme which is rationalising our offices, and certainly, one which can generate more savings from looking at different way of working.
As a large employer, you can imagine what we spend on our office estate every year, so we’re certainly looking at the Investing in Nottinghamshire plan to generate savings.
There remains a great deal of uncertainty in council finances across the country, with several key Government acts still outstanding, including the social care green paper, the fair funding review and the comprehensive spending review.
I’m optimistic that the signs we’re receiving from Government on the spending review and on the settlement for next year are positive.”
