£3 million savings target for Council

Published on 23 December 2010

Healthy balance sheets will help to protect services as Epping Forest District Council prepares to reduce overall spending by £3 million over the next four years. Savings have already been identified to cover next year's budget. However, councillors and staff are not underestimating the long term challenges of the government spending review.

Government block grant funding is set to fall by 15.7 per cent next April. This will be followed by a further cut of 12 per cent in April 2012. Epping Forest District Council predicts government grant funding will fall to just over £6 million by April 2014.

"It is a hard position but we are well placed to weather the storm and protect our residents." Councillor Chris Whitbread, Finance Portfolio Holder told district councillors at the meeting of Full Council on 13 December. More detail on the impact of the government cuts will be given to councillors at a joint meeting of the Finance Cabinet Committee and Scrutiny Panel on 17 January 2011.

Epping Forest District Council had already made plans for a cut of £500,000 in spending next year. The government figures mean the council will now have to find another £58,000 next year. The real impact of the cuts is not expected to be felt until 2012 when the council will need to find almost £1.5 million in savings, about £500,000 more than it had expected.

Because of the phasing of the government reductions, Councillor Whitbread believes the Council will have to find less savings than originally planned in 2013 but then slightly more again in 2014.

"The picture is very complicated. We still need to do a great deal of analysis but we are a financially strong council. I am confident we will meet the challenge and protect important services." said Councillor Whitbread.

Reductions in the government block grant are being partially off-set by other increases in income, not all of which have been finalised. A 'new homes bonus' on new housing will match council tax income for every new home built. The government will also recognise councils that don't increase Council Tax through an additional grant. Councils like Epping Forest District will also see the income from Council Tax rise as new homes are built and the overall number of houses increases.

In an all-staff e-mail, Acting Chief Executive Derek Macnab said: "However, the advantage we have over many other authorities in the region, is that we have more time to plan and manage any programme of efficiencies, by virtue of the fact we have already identified savings for next year. This is not to say that the process will not start immediately, as the sooner we start to identify savings options the better."

Mr Macnab added: "I understand the uncertainly this creates for staff, but please be assured that I will keep staff updated and that full consultation will take place on any proposals which may affect jobs and services."

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