Bournemouth, Christchurch and Poole (BCP) Council has published an update suggesting that “significant improvements’ have been made in its financial outlook over both the short and medium term.
BCP is now predicting a surplus of £9m at the end of 2022/23, meaning that not all the previously identified savings proposals may now need to be implemented in 2023/24.
A financial update report due to be discussed at BCP’s Community and Corporate Overview and Scrutiny Committee on 12 December and its Cabinet meeting on 14 December suggested that £6.2m of currently identified 2023/24 savings can now potentially be deferred to 2024/25.
“This hasn’t happened by accident. It’s down to our proactive and speedy management of the budget in the face of the £55m added to the cost of running the council over the next two years due to the cost-of-living crisis,” said council leader Drew Mellor.
He pointed out that the council’s utility costs had increased by £2m this year alone.
Former local government minister Paul Scully wrote to BCP in September saying that he was “minded” to offer £20m of financial support in the form of a capitalisation direction, but that he had “significant concerns” over the council’s financial strategic direction.
Scully said the financial support was subject to the council producing a plan for addressing its budget gap in 2023/24 and the establishment of an external assurance review of governance and finance arrangements. The government is now in the process of commissioning the external review.
Earlier this year, the authority’s proposal to sell its beach hut portfolio to a subsidiary company was blocked by the government in an amended direction on the flexible use of capital receipts.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
