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Northamptonshire County Council: Plan to save £55m unveiled Northamptonshire County Council plan to cut £65m unveiled
(about 1 hour later)
A council plans to cut spending on agency staff and highways services, while boosting tax receipts, to tackle a £55m funding shortfall. A council plans to cut spending on agency staff and highways services, while boosting tax receipts, to tackle a £65m funding shortfall.
The "stabilisation plan" published by Northamptonshire County Council aims to address a £35m deficit from 2017-18 and a projected £20m overspend in 2018-19. The "stabilisation plan" published by Northamptonshire County Council aims to save an additional £20m in 2018-19, on top of £45m in cuts already planned.
Government-appointed commissioners have been brought in to oversee the council, which has banned spending twice. Government-appointed commissioners have been brought in to oversee the council, which has twice banned new spending.
Council leader Matt Golby said the authority faced "unprecedented times".Council leader Matt Golby said the authority faced "unprecedented times".
It has been forecast that the Conservative-run council will go over budget by £30m in 2018-19, but savings mean that figure now stands at £20m. Plans to slash £35m had already been announced in the initial budget passed for this year.
Newly-announced cost-saving measures include clawing back £6m by increasing the number of people paying council tax. But it has since been forecast that the Conservative-run council will go over budget by £30m in 2018-19 as auditors said it was not allowed to use money from the sale of buildings to contribute towards savings.
The authority said reductions of £10m had already been achieved, leaving £20m to be found.
Newly-announced cost-cutting measures include clawing back £6m by increasing the number of people paying council tax.
The authority will be scrapped in 2020 to make way for a new unitary council.The authority will be scrapped in 2020 to make way for a new unitary council.
Other plans to make money back include increasing the collection of council tax accounts in arrears and by reviewing single person discounts for those no longer entitled to receive them. Other plans to make money back include increasing the collection of council tax accounts in arrears and reviewing single person discounts for those no longer entitled to receive them.
Meanwhile, there will be reductions in spending on highways and agency staff, with the latter reducing by 30% in all areas other than children's social services. Meanwhile, there will be reductions in spending on highways and agency staff, with the latter reducing by 30% in all areas.
Highways spending faces a £350,000 cut to funding this financial year, with further savings of £150,000 planned for 2019-20. Highways spending faces a £350,000 cut this financial year, with a further £150,000 planned to go in 2019-20.
Mr Golby said: "These are unprecedented times for us and as such we need a robust plan to address the financial challenges we now face.Mr Golby said: "These are unprecedented times for us and as such we need a robust plan to address the financial challenges we now face.
"The stabilisation plan published today alongside our latest financial reports show how we are now moving firmly towards stabilising our budget position.""The stabilisation plan published today alongside our latest financial reports show how we are now moving firmly towards stabilising our budget position."
The authority's chief executive Theresa Grant added: "We now have a firm set of proposals and new measures which can help us move towards stabilising our budget.The authority's chief executive Theresa Grant added: "We now have a firm set of proposals and new measures which can help us move towards stabilising our budget.
"However, we are of course acutely aware that the challenge to deliver this plan is significant and as such we will now focus all our energy on doing so.""However, we are of course acutely aware that the challenge to deliver this plan is significant and as such we will now focus all our energy on doing so."
'One of the worst contracts'
The document also sets out problems with a major private finance initiative (PFI) contract.
It reveals four specialist healthcare centres for vulnerable elderly people have only been operating at 30-50% capacity for a number of years.
The contract with Shaw Healthcare was negotiated in 2003 under a Labour administration and is worth almost £200m over 29 years.
The County Council says it is paying between £1.5 - £2m per year for the unoccupied beds.
Attempts to improve the occupancy rates have been thwarted by referral criteria under the terms of the contract.
Mr Golby said it was "one of the worst PFI contracts in the country".
The BBC has approached several members of the Labour opposition for comment.