Sefton MBC Cabinet to Discuss Budget Shortfall

Sefton MBC Cabinet will meet on 21 June in Bootle Town Hall. The meeting starts at 10.00am.

Item 4 on the agenda will consider consider a report on further spending reductions in the next two years.

This report sets out the following key messages:

"§ The Council set its budget in March and at that time it was estimated that the Council would need to reduce its spending by around £25m over the next two years.
§ Since this time Government has made a number of announcements which now means that it is now estimated that the budget deficit is much larger.
§ Sefton now needs to reduce spending by £43 million over the next two years.
§ This is a significant challenge and will mean a continuation of the in-depth reviews of all Council spending that have been undertaken since 2009.
§ The budget deficit is directly related to a real term reduction of Government Grant of £33 million with the rest being the extra cost Adult Social Care services – given Sefton’s ageing population.
§ At this stage it is assumed that Council Tax will not be increased in the next two years. This will need to be considered over the coming months before making a final decision. Any increase will need full consultation with the public.
§ However due to Government rules the most that can be raised in extra Council Tax would be £2m.
§ This challenge is made much greater by the fact that the Council’s spending has already reduced by £64 million in the last two years’ budgets.
§ These forecasts are based on what it is estimated Government Grant will be. It is unlikely that the actual figures will be received until December 2012 and so plans need to be made based on these numbers.
§ The Council will continue to develop the process that has been in place for a number of years.
o All stakeholders must continue to look for any savings that can be made
and ideas continue to be welcomed
o Specific reviews have commenced of a number of major services including Social Care, Libraries and Leisure.
o All services will continue to be reviewed and assessments made of the
most appropriate level that must be provided and that the Council can
afford
o The Transformation Programme continues to look at the longer term way
we deliver our services
§ This report asks Cabinet to approve a small number of non controversial savings items. None of these will involve any staff reductions.
§ Sefton will keep staff informed throughout this process through briefings, intranet and face to face. There will be lots of opportunities for staff to get information and ask questions and the Council promises to maintain our open approach to the budget.
§ The Council intends to continue to consult and engage with all our communities and partners."