23 February (Part 1) -
Costs up, reserves down
Last nightְ’s Cabinet meeting was - just for once - not only about the money but it started that way.
The new Finance Director, introduced as Miss Holland, gave an admirably
clear statement of the present - that is end of December - situation. A £9·3 million
overspend, some £750,000 worse than a month earlier. Children’s services have
soaked up £1·889 million more than expected but fortunately slow
progress with Shenstone School and redevelopment in Erith has in part
compensated for it. (A £1·03 underspend there.) Housing demand has fallen too
which runs counter to experiences elsewhere in London.
The overspend on Children’s Services is the highest in London.
Contract inflation has exceeded predictions and £467,000 will have to be taken
from reserves and pay increases have suffered the same fate. Another £185,000 out of reserves.
Cabinet Member Leaf (Resources) spoke in more general terms. the situation was “very challenging and adverse”
with inflation, Covid and care services all slipping easily from his practiced
tongue and all Councils are in much the same boat.
Cabinet Member Munur (Growth) confirmed what most people will have guessed, that the huge
demand on children’s services was coming from the poorest areas of the borough
and it was therefore right to focus early intervention in those places. New job
starts being an important part of that effort.
Cabinet Member Seymour (Adult Social Care) reiterated that the
repercussions of the Covid lockdown continue to have a profound effect on care services.
Cabinet Member Diment (Places) said that the parking budget, despite the
constant disruption caused by the utilities, is going to break even this year but sports and leisure lags a bit.
Councillor Borella asked how long it would take to get the budget back into
control and is Bexley an “outlier” compared to its neighbours? (It is “middle of the table.”)
If there was an answer to the first question I didn’t hear it.
And that concluded the Budget monitoring report.