The financial future is bleak says council which asks residents which services they think could be cut

By Neil Speight

19th Aug 2022 | Local News

HAVING acknowledged the bleak financial prospects for next year, Basildon Council is asking residents to help it determine what services should be treated as a priority in the next financial year as the cost of living crisis continues to bite.

Offering residents the chance to have their say via an online consulation, the council says: "Each year the council has to set a budget that balances spending on services with the resources available to it.

"In recent years, the government has been reducing its Revenue Support Grant (RSG) to the council. In 2022/23 Basildon Council will receive no Revenue Support Grant from the government at all. This means the council must get all of its income from council tax, business rates, money it can raise itself and specific grants it can bid for.

"Over the past two years the Covid pandemic has had a significant financial impact on the council in its role as community leader. Although the impact of the pandemic on society and the council has declined due to the vaccination programme, the economy is still recovering from the impact of the lock downs and other restrictions.

"The current economic outlook is bleak.The war in Ukraine and the lingering effects of the pandemic have created an inflationary pressure in the economy. The CPI rate for May 2022 was 9.1% and the Bank of England is predicting a peak of 11%. This affects the council both directly and indirectly. Energy costs are rising, the council's contractors are experiencing similar pressures and may seek to offset these by increasing costs charged to the council.

"Indirectly, the impact of rising costs is likely to result in greater demand for the council's services.

"To keep balancing its budget, it is likely that the council will have to increase its income and reduce its spending.

"On current forecasts, if the council takes no action, it expects to have a shortfall in its budget of £1.2 million by 2023/24, rising to £2.9 million in 2025/26.

"The council would like your views on how it spends its money, how it might raise more money including the level at which it should set the council tax next year.

"The information from this survey will be used by councillors as they set the budget and council tax for 2023/24."

If you would like to take part in the survey, and offer your views, click this link.

     

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