Residents asked for views as budget pressures persist

Budget consultation

Rotherham Council is seeking the views of residents about the Council’s budget for the coming year.

Following £200 million of cuts to the Council’s budget since 2010, the organisation has shrunk by about 1,800 staff over that period of time. Current projections suggest that the coming year will not require additional significant cuts or savings to be made, based on the assumptions already in place, and in this context the Council wants to hear from residents which services they want to be prioritised.

The Local Government Association (LGA) estimates councils as a whole in England face a £4 billion funding gap over the next two years just to keep services running. According to the LGA, half of all councils nationally say they are not confident they will have enough funding to fulfil their legal duties next year, including providing statutory services.

Some councils have already issued 114 notices, with many others saying they are on the brink of doing the same. Those councils will have to make a raft of cuts or face going into intervention.

Council Leader, Councillor Chris Read, said: “Councils across the country are facing an extremely challenging financial environment and Rotherham is no different. However, because of the prudent approach we have taken locally we are in a better place than many other councils across the country, but things are still very tight.

“The Government’s funding shortfall however makes it extremely difficult to plan for the long term. We expect the cost of providing social care to people of all ages to continue to rise over the years ahead, and while of course rising prices and bills affect the council just as they do ordinary households.

“Rotherham residents need and deserve to live in a place that they are proud of, which is why we are continuing to invest in the services that people will rely on, we’ve put more money into street cleaning, our libraries and roads, alongside delivering regeneration, investing in local towns and villages across the borough.

“We want to hear from residents about their priorities for our basic services, as well as what they would not make a priority, so we can best meet people’s needs and expectations.”

This year the council set an annual budget which included £4.3m of new savings.

This was necessary due to reduced Government funding, an increased demand for services because of a growing and ageing population, and significantly high inflationary pressures, putting costs of services up.

No new savings are on the table for now, but a £4.2m predicted overspend has resulted in the Council tightening the purse strings to bring this back under control by year end.

This is due to placement pressures in children’s services, home to school transport costs, increased demand on homelessness services, property costs going up, and rising food prices impacting school catering costs.

Added to this are further pressures on income generation due to the longer-term recovery from Covid-19 and the cost-of-living crisis.

The Council is now asking residents and partners for their views on the current budget and what should be the priorities for spending and savings next year.

The consultation, which began last Friday (December 8) will run for four weeks until mid-January and will help determine where the Council should look to prioritise expenditure and where it should look to reduce levels of investment.

The feedback will be considered as part of the Council’s ongoing decision-making processes.

The proposed budget will be scrutinised by the Overview and Scrutiny Management Board on 7 February before it is considered by Cabinet on 12 February 2024. Cabinet will make a recommendation on its budget proposals, and this will be debated at full Council on 28 February, and a position then set.

To take part in this year’s budget consultation please click here: https://www.rotherham.gov.uk/consultation-feedback/say-council-budget-2024-25

Notes to Editor

Where does Rotherham Council get its money?

The Council’s current budget is £302 million. This is funded from:

  • £129 million Council Tax
  • £89 million Business Rates
  • £83 million Government funding

What does Rotherham Council spend its money on?

  • £65m on Children and Young People's Service
  • £120m on Adult Care, Housing and Public Health
  • £54m on Regeneration and Environment Services
  • £35m on Central Services
  • £21m on Finance and Customer Services
  • £7m on Assistant Chief Executive portfolio

The area of highest spend is social care due to demand.

Protecting the most vulnerable children and adults, whilst continuing to provide core services – like road repairs and street cleansing – underpinned the authority’s budget for 2023-24. View the budget set last year here: https://moderngov.rotherham.gov.uk/mgAi.aspx?ID=95813#mgDocuments

The Council Plan then sets out medium-term priorities and actions, building on and taking forward commitments made by members to the Rotherham community based on this budget. The plan is framed around five themes:

  • Every neighbourhood thriving
  • People are safe, healthy, and live well
  • Every child able to fulfil their potential
  • Expanding economic opportunity
  • A cleaner, greener local environment

Published: 15th December 2023