Yahoo News More 'difficult decisions' on way council cabinet member warns in gloomy financial assessment
A council cabinet member has warned of “further difficult decisions” coming down the line despite plans for multi-million pound savings over the next 12 months.
Councillor Christopher Massey, the cabinet member for resources on Redcar and Cleveland Council, said it was hoped “tough decisions” that had already been made would put the local authority on a sound financial footing. In February the council agreed to an overall 4.99% local council tax rise, while approval was given to hike up various fees and charges.
A balanced budget set for 2024/25, as required by legislation, includes a total of £7.6m worth of planned savings. Libraries and stop smoking services face cuts, with a review having taken place of the former, while residents will also have to pay £40 to have their garden waste collected from this month.
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In a report for the council, Labour ’s Cllr Massey, who took over the financial brief from Liberal Democrat Councillor Glyn Nightingale last May, said: “Without assurance over a longer term funding settlement from Government and the unrelenting trajectory of spend in statutory services, it would be unrealistic to suggest that we will not have further difficult decisions over the coming years.”
Cllr Massey referred to some other local authorities declaring effective bankruptcy because they were unable to deliver services within budget. He said: “Thankfully we are not in that position, but it was very apparent upon taking up my role that without decisive action that could be the case in the future.”
Cllr Massey added: “Such is the position that local authorities are in, with resources having reduced for more than a decade, there were no easy options for balancing the budget. In effect, our options were reducing and streamlining service delivery or generating additional income. In reality, our challenge was so great that the council has needed to use both options.”
Cllr Massey said further opportunities for cost reductions and generating income would continue to be explored.
He referred to the council’s new corporate plan, adopted in December, which sets out its priorities, and said that, given the financial climate facing the council, “it may not be possible to deliver positive change at the pace or extent that we would like”. But it still needed to be clear about what is most important, so resources could be directed accordingly.
Cllr Massey said: “We have taken steps to seek to ensure that the organisation is strong and sustainable in the short term. Longer term sustainability will require a reduction in costs for statutory services, a continued reduction in the rate of inflation and greater certainty over future funding settlements.
“Whilst there is room for some optimism with significant economic development work going on in the borough, which has the potential to generate additional business rates, further difficult decisions may be required until any benefits of this potential economic growth are fully realised.”
The report detailed the sickness absence rate among employees of the council following previous requests for information from some councillors.
It said 17,639 days had been lost between March 1 last year and February 29, the equivalent of 9.48 days for each full-time member of staff. The report said the half-yearly position comprising April to September last year showed sickness absence was comparable to local authorities in Darlington and Hartlepool and lower than Stockton.
It said: “Some of the measures to support staff in the workplace include occupational health to manage health related issues and ensure staff are physically fit for their role. In addition, the organisation utilises a counselling service for staff as well as physio.
“Upon staff returning from sickness, managers are mandated to do a return-to-work interview and a sickness absence review if necessary. Through these meetings, the individual needs of staff are considered and actioned as appropriate. “
Cllr Massey’s report also referred to the profile of the council’s workforce with 30% aged over 55, while there was a 9.7% pay gap in favour of women.
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