Council leader writes to Prime Minister about borough's financial challenges

By Barrie Hudson - 30 November 2022

CommunityPolitics
  • Swindon Borough Council leader Cllr David Renard

    Swindon Borough Council leader Cllr David Renard

Swindon Borough Council leader David Renard has warned Prime Minister Rishi Sunak that the borough faces a financial crisis.

He says in a letter that money-saving measures councils are obliged to put in place in will impact some of the most vulnerable in society.

Cllr Renard calls on the Government to provide extra money to help care for the neediest people in the borough.

The letter says in part: "Upper tier local government is facing a financial crisis. The letters you have received from my colleagues in Kent, Hampshire and Herefordshire relay the facts of the situation that most of us find ourselves in. However, unitary councils face the ‘double whammy’ of increased demand and reduced incomes which have not returned to pre-pandemic levels.

"Swindon Borough Council has comparatively low council tax and low spending compared with its peers and a strong track record over 18 years of delivering within budgets. However, we too are facing budget deficits over the next few years of a scale that has never been seen before.

"We have spent the past year looking at how far we can go in closing our future revenue budget gap and whilst we have considered every remaining option available to us to generate savings and efficiencies, most of these are going to be very unpalatable and will impact on some of the most vulnerable in our society."

The letter from the leader comes amid council warnings of hard times ahead

The Chancellor's Autumn statement increased the amount by which councils with social care responsibilities can increase council tax without resorting to a public vote. Swindon Borough Council will be able to increase bills by up to five percent.

The £156.7m 2022-23 council budget, agreed in February, includes £78m, for adult services, £46.3m for Children, families and community health services - a total of around 80 percent.

Of the budget, 75 percent is drawn from Council Tax, 22 from business rates and the rest from Government grants.

According to the council, costs for adult, children's and community health services are set to increase significantly, and there will also be increased costs associated with other issues including rising energy prices.

Cllr Renard's letter says: "Significant growth in demand, particularly in adults’ and children’s social care as well as spiralling inflation, increases in energy costs and increases in the national minimum wage and pay awards have enlarged the budget gap and there are also the issues around reductions in income and the decision to cap social rents which reduce our ability to maintain properties, make them more energy efficient and deliver new, much needed housing. Services including planning, waste and recycling collection, libraries and leisure centres face an uncertain future due to the squeeze on funding and prioritising on the social care expectations."

Cllr Renard calls on Mr Sunak's Government to provide:
- Annual increases in funding that match the growth in adults and children’s social care services or legislative change to reduce the demands on the service
- Full funding of the Social Care Funding Reforms and Special Educational Needs growth
- Freedoms and flexibilities around council tax setting and charging for services
- Legislative change that can help local government help itself

The letter concludes: "We want to work with you to develop a long-term strategy to deliver critical local services and growth more effectively and await with interest the outcomes from discussions we hope you will be having with the Leaders of the aforementioned Councils as this will help to determine our next actions with regard to our budget setting. I am willing to join any discussion if that will be helpful."

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