Southwark has put forward a budget that will see a council tax rise, cuts to adult social care and increase the fees for numerous services.
It’s the council’s attempt to balance the books after central government’s £162.4m settlement, announced in December, left them with a £6.3 million initial gap to plug.
Cllr Stephanie Cryan, Southwark’s finance chief, has insisted that the budget “protects the most vulnerable residents” and core services.
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These are the Labour council’s final recommendations but they still need approval from the Council Assembly on February 22, where the Lib Dems will suggest changes.
So what’s in the budget, where are the savings being made, and what might this mean for household finances?
Council Tax Rise
The government has allowed local authorities to increase their council tax by 4.99 per cent, up from the previous limit of 2.99 per cent.
Chancellor Jeremy Hunt’s claim that the settlement increases authorities’ core spending power by 9.7 per cent presumes councils will take full advantage of the new limit.
From 2008 to 2019, Southwark froze its element of council tax increases but says new financial pressures mean it is “no longer sustainable to hold this position”.
- Southwark Council will raise council tax by 4.99 per cent
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For Band D properties, this would mean a council tax bill rise of approximately £1.15 per week.
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The Greater London Authority gets a share of council tax and has plans to increase its portion by 9.7 per cent.
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If approved on February 23, this would mean Band D properties’ council tax bills would go up by £1.89 per week.
Adult Social Care and Children’s Services
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Children’s and adults’ services make up a whopping two-thirds of the council’s budget and are undergoing serious restructuring.
The government’s 4.99 per cent council tax rise demands that 2 per cent is reserved for adult social care – but the council says this isn’t enough.
- Respite care services, which support disabled and vulnerable adults, are being cut by £600,000. The council originally proposed a £1.1 million slash but diluted the proposal following outcry from Lib Dems and its own Labour councillors.
- Four fewer ‘step-down’ flats, which ease people’s transition to normal life after operations, are being commissioned, saving £38,000.
- Families suffering mental health crises and children with behavioural issues will have less clinical support to the tune of £140,000.
- Youth offending services are set to receive £110,000 less money this year.
Fees and Charges
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Charging residents for parking, waste disposal and other services are important sources of revenue for the council.
While many of the charges are going up roughly in line with CPI inflation – 9.2 per cent in December – some of the increases go beyond that figure.
- Bulky waste charge, currently £25 for up to ten items, is set to increase to £35, a 40 per cent increase.
- Household garden waste collection will rise from £40 to £60 under the proposals, a 50 per cent increase.
- Monthly residents’ parking permits, which are more common after the expansion of controlled parking zones, would soar from £16.40 to £27.90, a 70 per cent surge.
Housing
Housing is less impacted compared to other departments and the council has said its budget will allow it to “build new council homes at council rents” and “deliver consistently high-quality services”.
As a demand-driven service, the council has said it would struggle to make savings without negatively impacting residents – but there is one huge ‘efficiency saving’ for temporary accommodation.
- The council is reducing temporary accommodation contingency funding from £2 million to £1 million – a pot of money that helps temporary accommodation tenants in emergencies.
- The housing department will also be saving £40,000 by “rationalising” application processes.
Health
While NHS funding is done separately, some health services, like those provided in schools, are the council’s responsibility and are also subject to savings.
- Fewer employment contracts, worth an £863,000 saving, will be handed to school nurses, which the council says reflects falling pupil admissions.
- Despite having one of the highest rates of sexually transmitted infections in London, core sexual health services will receive £540,000 less.
Road and pavement maintenance
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The management of Southwark’s highways is a constant source of political dispute but the council is preparing to make some significant changes.
- It will save £500,000 by focussing its cleaning on the dirtiest areas and town centres with the highest footfall.
- Highway maintenance will receive £50,000 less money this year, made possible by better upkeep of the public realm and tree stock last year.
Weird changes
The council’s budget also reveals efficiency savings in a couple of unexpected areas.
- The Mayor of Southwark has had a £70,000 yearly budget for a chauffeur who drives him to civic events. This is being reduced to £20,000.
- The charge for removing dead animals from properties, like foxes, is set to go from £61.50 to £100, a 62.6 per cent increase.
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