Minutes:
OWBC finds itself in a difficult financial situation with costs to the Council having risen more over the last 12 months than expected, including the pay increase, cost of living, and homelessness related expenditure. 62 families are currently in temporary accommodation which has cost approximately. £600k that was not budgeted for. Rough sleepers have to be accommodated by the Council when the temperature drops to a certain level which has also been the case this year. The Council has a statutory obligation regarding homelessness but the money the Council can receive to support property rental in regards to this tends to be, on average, £200 lower than current market rental rates. The Council has also had to pay for Bed and Breakfast accommodation for some families which is not ideal for them, as well as increasing costs to the Council, due to a lack of available properties. Some of the Council’s owned properties are having to be utilised as temporary accommodation. The Chair also noted the difficulties this causes the Council’s Housing Teams in the decisions they are forced to make.
The Council has little choice but to make tough decisions in respect of its budget in order to avoid having to issue a 114 notice stating the Council bankrupt. If this were to occur then inspectors would take over control of the council and increase council tax by up to 10%, cut services, and move bin collections to a fortnightly basis. The Council has to legally produce a balanced budget. In previous years the Council has used its reserves to do this but they are now at too low a level to utilise for this. Thurrock Council is known to be raising Council Tax by 15% under the direction of the inspectors.
Car parking charges, green waste collection charges, fortnightly bin collections, are all required in order to produce a balanced budget. It is known this will upset residents.
By 2026 every Council will be required to do a weekly food waste collection; originally central government would part fund this but it is now expected to be fully funded by OWBC. The Council is also required to reduce its carbon footprint which fortnightly collections will enable. Electric waste wagons are not very effective and cost a large amount to purchase. Hydro-fuels are also being considered as a future option.
Central government will also be implementing a standard recycling service nationally which may change how the service operates locally. All recycling currently goes to CasePak, with OWBC being the collection agency and LCC being the disposal agency in charge of the contract. If this contract changes there may be additional charges for OWBC. By law no waste can be left in the wagons overnight so they must be emptied the same day.
POPS (soft furnishings) can no longer be picked up by the existing wagon and must be picked up by a dedicated vehicle that goes to an alternate disposal site.
The cost of white goods collections have increased but the cost is aimed to be competitive to prevent fly-tipping. Garden waste collections now cost £60 per year; this is middle of the range for the charge across the County.
By making these changes the Council will not be declared bankrupt.
Central Government provides the Council 1 year’s settlement which makes forecasting for budgets a difficult process. With elections coming up there is no clear picture on how or if this will change.
With the increase in car parking charges residents queried as to whether there would be a surcharge on their existing permits from April; it was confirmed this wouldn’t be the case. Residents were also concerned that to park in each town centre additional permits are required at an extra cost. The Chair noted that many Councillors felt that residents parked in their own town centres the majority of the time and that the payment machines provide flexibility for parking in other areas.
Residents raised concerns around the size of their existing bins with the changes to fortnightly collections. The bins are bought through the Council’s capital budget whereas the collection service is funded through the revenue one. Fortnightly collections would be introduced from September in order for officers to consider all elements of this decision and planning for it. Residents believe that bin collections will be household waste one week and recycling the next, and queried as to could it be both bins on the same fortnightly collection for ease. Council officers have yet to fully decide on the collection rotation. The refuse workforce is also likely to be reduced.
Cllr. Gore highlighted that some of the car parking machines are not working and these are discouraging residents from parking in the Council’s car parks. The Chair noted that the machines are currently being upgraded from both a software perspective and to a hardwired electricity connection.
The amount of work expected of Council Officers has also increased as staffing levels are reduced.
All local authorities have to have a statutory external audit which was previously supported in cost by central government at £65k per year. This cost has now increased by 151% and has to be funded by OWBC which has further added to the budget pressures. This is the same for all authorities.
The Police are also facing reductions of around 200 employees. The Police precept of Council Tax is increasing by £13.00, which is 14% higher than the previous precept in Council Tax bills.
Resident raised the point that the media tends to not report on the pressure Central Government is placing on local authorities through the budget cuts they are implementing. Councils are expected to raise the majority of their funds through other routes. Covid had a large impact on Council budgets with Council’s having been asked to spend whatever was necessary to make communities safe on the proviso that the money would be paid back; the money was never paid back however.
The Police’s wage increase of approx. 6% also had to be funded out of a budget that was not going to receive an increase from Central Government. This was the same for local authorities with the pay award for employees, and pay rises for NHS staff.
This information is publicly available but not widely known by residents; this means that residents are not always aware of where their complaints are best placed when the Council has to cut services or increase charges.
Cllr. Loydall raised as a point of accuracy that, through his role on the Police and Crime Panel, he is aware of significant changes in the role the Police are expected to play in preventing crime and disorder, including a focus on cybercrime and other emerging priorities. The Police target is 2298 new officers, the current rate is 2242 officers, this is a net reduction still in police officers from the initial cuts several years ago. Council Tax funds 257 Police Officers from collections from residents, not additional funding from central government.
Residents expressed frustration that central government is reducing this funding without necessarily explaining why to the public.
Residents asked what happens with the funding raised from the sale of Bushloe House. The building is sold subject to contract, with planning permission being sought. Funds raised through this enter into the Council’s capital budget which will pay for the cost of the new Brocks Hill offices.
Residents asked if the Council has been in touch with any authorities that have already issued 114 notices to see what measures they have been asked to implement by inspectors. Most authorities belong to the Local Government Association who have been lobbying for additional funding for several years to no avail.