Key Points
- Bexley Council predicts a £2.2 million overspend this financial year, a relatively low figure compared to other London boroughs.
- Neighbouring Greenwich faces a £45.1 million budget shortfall; Bromley £18 million; Hillingdon has reportedly “basically run out of money.”
- Bexley’s forecasted overspend was reduced by £68,000 following an updated report presented on 23 October.
- The main budget pressure remains adult and children’s social care.
- Cllr David Leaf, soon to be Bexley Council leader, praises officers’ efforts in budget management and cost containment.
- Bexley aims to save £6.3 million through mitigation efforts, improving on an earlier forecast.
- Cllr Chris Taylor highlights a £325,000 reduction in the fostering budget, attributing this to innovation and increased support for foster carers.
What is the current budget situation for Bexley Council?
As reported by the London Economic correspondent, Bexley Council is forecasting an overspend of £2.184 million on its budget for the current financial year. This figure reflects a slight improvement, reducing the predicted overspend by £68,000 compared to earlier estimates. The update was presented to the council’s cabinet on 23 October.
Unlike Bexley, neighbouring boroughs such as Greenwich are facing significantly larger budget gaps, with Greenwich expecting a £45.1 million shortfall, Bromley an £18 million deficit, and Hillingdon Council reportedly “basically run out of money,” as noted by a cabinet member cited in The Guardian.
Why does Bexley Council’s budget have pressure points?
The primary areas exerting pressure on Bexley’s finances remain adult and children’s social care, which is in line with the challenges faced by most councils across England. The increased demand and rising costs associated with social care services continue to strain local government budgets.
How does Bexley’s budget situation compare with other London boroughs?
According to an analysis by BBC London, Bexley’s overspend is modest relative to its neighbours. Cllr David Leaf, Bexley’s Cabinet Member for Resources and incoming council leader, emphasised the council’s comparatively strong financial position by stating:
“Our position is not uncommon in local government. There are other councils, particularly in London, that are forecasting far larger overspends than we are.”
Cllr Leaf further expressed frustration over the disparities in government funding, suggesting that Bexley operates under tighter financial constraints than other boroughs despite delivering effective services:
“God only knows what they do with that money, because certainly if we had some of that money and the level of funding that they have, we would certainly be able to do things a little bit better and differently here.”
What steps is the council taking to address the budget gap?
The council is actively working to resolve and manage budget pressures through a range of mitigation strategies. Cllr Leaf stated that Bexley hopes to realise savings of £6.3 million, which is approximately £500,000 more than initially forecasted during an annual service review.
These savings efforts include more stringent budget tracking, containment of spending, and efficiency improvements. According to a report in the News Shopper, officers in Bexley have worked closely to track budgets and contain costs to reduce overspend, highlighting a proactive and disciplined approach to financial management.
How has the council managed spending in children’s social care?
Cllr Chris Taylor, Cabinet Member for Children’s Services, highlighted a £325,000 reduction in the council’s fostering budget. He attributed this reduction to innovative practices and investment in foster carers within the borough.
As noted by the Local Government Chronicle, Cllr Taylor praised the council’s approach, saying:
“I think that’s just really a testament to the innovation and investment we’ve put into our forester carers in Bexley by being able to grow the numbers and also upskill them in terms of the type of children that they can take on.”
He emphasised that these savings have been achieved without compromising quality, ensuring “really good quality care” for children and families relying on fostering services.
What is the outlook for Bexley Council’s financial future?
With Cllr David Leaf soon to become council leader, there is cautious optimism about Bexley’s financial future. His comments reflect confidence in the management team’s ability to navigate ongoing challenges with the resources available.
However, like many other councils across the UK, Bexley continues to face significant pressures from rising social care costs and limited government funding, making budget discipline essential in the months ahead.
