Plymouth City Council’s Budget Robustness Statement published at the end of February contained a stern warning to the council from its interim strategic director of transformation and change, Andrew Hardingham
“As the S151 officer, in my opinion the current model for funding locally provided care services (both adults and children’s) is fundamentally unsustainable.
“Whilst this is outside of the control of the council, the council will need to address these issues in the next MTFS as the Fair Funding Review and business rates devolution is introduced as the new funding model for local government.”
The problems faced by the council include a falling central government grant, uncertainty over the future funding model, and an asset investment fund, which continues to deliver a positive yield, but whose borrowing costs are expected to increase while investment returns are not forecast to grow.
The council voted through a 2.99% increase in council tax after the budget report was presented, which Hardingham pointed to as being essential, but he also stated in the report that previous decisions not to increase council tax had meant that there was now £9m less available to fund core services.
Hardingham said: “I have undertaken a comprehensive review of reserves and balances and consider these to be adequate should the council deliver within the proposed budget.
“However, it should be noted that an overspend of 1% in any year would reduce general balances by 20% unless alternatively funded”.
In addition to this exhortation, Hardingham warned that it was necessary that: “There is a clear understanding of the duties of the council’s statutory financial officer and that the service implications of them being exercised are fully understood by members and senior management alike.”
