Maldon District Council should take urgent action to develop a “realistic and robust” plan to deliver the efficiencies and savings that will ensure its ongoing financial sustainability.
That’s one of the key recommendations of a Local Government Association (LGA) finance peer challenge report, which also says it is vital that “all staff and members acknowledge the urgency of the financial position”.
Unless action is taken immediately to identify savings the council in Essex will run out of general balances in 2025/26, the peer team report said.
The council’s Medium Term Financial Strategy (MTFS) needs further development in terms of income from projected growth, sensitivity analysis, and associated risks, the report noted. “Once the level of the financial gap is clear plans need to be developed to address the budget gap and associated risks fully understood,” the report added.
Work needs to be done to agree priorities, and the peer team report recommended the council arrange a top team away day for officers and members post-election to do this. Mentoring support to senior leaders is also needed, according to the report, as is clarification of roles for members and officers.
A “slight disconnect” between Finance and Strategy at the council was identified, “with various work being carried out in isolation – work was needed to join up existing strategies and policies”.
The peer team report also recommended establishing a corporate finance board “which will own the corporate plan and finance for authority”.
A detailed communications plan – both internal and external – also needs to be developed to support development and delivery of the savings plan and overall financial position, and this is a “key next step” for the council.
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On the overall financial challenge, the report stated: “It was clear to the peer team that staff and members understood the headlines around the budget gap but there was a lack of clarity around how the gap was to be met and whose responsibility it was to deliver the savings and efficiencies.
“Maldon has a number of the building blocks in place to be confident about achieving the desired result but it must keep the urgent challenge and position at the forefront of decision making.
“The 2023/24 net operating expenditure budget after adjusting for statutory adjustments, but before any non-service specific funding and use of reserves, totals £12.541m and is therefore £2.005m (19%) higher than 2022/23 (£10.536m).
“The 2023/24 budget relies on a £2m contribution from earmarked reserves, which includes funding for some one-off expenses such as the Local Development Plan Review, and a £0.421m contribution from General Fund Balances. This is not sustainable.”
Peer challenges are delivered by experienced elected member and officer peers. The peer team for the Maldon District Council report featured Dawn Garton, director for corporate services at Melton Borough Council; Sam Chapman-Allen, leader of Breckland Council; Shannon Coleman-Slaughter, head of finance and property at West Berkshire Council; and Ami Beeton, peer challenge manager at the LGA. The full report can be read here.
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