Southampton City Council launches budget consultation

Residents across the city will be asked to share their views on savings proposals that are being put forward in Southampton City Council’s autumn budget consultation, launching on 23 November 2023.

Some of the cost saving proposals were discussed at the Overview and Scrutiny Management Committee (OSMC) on Wednesday 22 November 2023 at 5.30 pm, which come as councils across the country continue to face unprecedented financial challenges, compounded by increased running costs and continued rising demand for adult and children’s social care services.

Some of the key consultation proposals that were discussed at the OSMC include:

• Council Tax increases for second homes and empty properties
• Increases to Housing rents and Landlord Controlled Heating charges, to reduce overspends in the Housing Revenue Account

Further information and the consultation questionnaire are available here.

£18 million of savings, efficiencies, additional income and reduced budget pressures have been found so far this year, with significant work being done to identify and deliver even more efficiencies and savings. Additional proposals will be put forward for consideration over the coming months to stabilise the council’s finances, while the council continues to operate in an environment of increased inflation, coupled with real-term reductions in funding.

The delivered and proposed savings, year to date, will not bridge the remaining £14.6 million gap for this financial year. In February 2023 the council set a balanced budget but since then continued budgetary pressures have arisen due to high service demand and rising costs, with around £32 million extra pressures for the 2023-24 financial year.

Despite drawing on reserves and numerous efficiency measures, including a programme of voluntary redundancy and with restructures underway, the sustained demand for services and the ongoing national economic situation have had a significant impact on the budget forecast with the shortfall still expected to be up to £38.4 million for the next financial year (2024/25). This is equivalent to around 10% of the council’s £371 million revenue budget excluding schools (the gross budget available to spend on delivering day to day services).

Councillor Simon Letts, Cabinet Member for Finance and Change, said: “All local authorities are having to respond to increases in demand and spiralling operating costs, and we are no different. The additional costs we are facing are adding significant pressure to services that are already extremely stretched and it is getting more and more difficult to protect the frontline services on which everybody depends. We are undertaking council wide restructures to streamline service delivery while continuing to ensure we are safeguarding those who are most vulnerable in society. With more people understandably accessing our services at a time of great need, it’s imperative we continue to prioritise those who rely on us most.

“In the face of this enormous national pressure, we remain ambitious for our city and will continue to focus on growth, jobs and investment, while delivering neighbourhoods to be proud of. Despite these challenges, we are working hard to deliver on our promises to create a city we can all be proud of. I would encourage everyone to have their say in the consultation.”