New unitary budget ‘will cope with whatever 2021 throws at it’

The draft budget for the new unitary council was unveiled on December 23, and while it proposes a maximum increase in council tax (1.99 per cent plus a three per cent social care precept) neither does it propose any cuts to services used by residents.

Last night saw the West Northamptonshire shadow’s executive committee [effectively the cabinet] agree to put the proposals out to a consultation which has gone live today.

But the Labour councillor Danielle Stone questioned whether the budget went far enough in tackling some of the major issues which are likely to surface in 2021.

She said: “I understand that we have a balanced budget and it’s brilliant that we’re not making service cuts. But for me it’s not enough. We’ve been through the hugest crisis imaginable with Brexit, the pandemic, with a recession coming and a lot of residents have been thrown into poverty.

“Demand pressures on services are going to go through the roof, and what we haven’t got built into the budget is the knowledge of what the budget should be to meet need, and what it should be to meet growing pressures and what that budget gap is. I don’t feel very safe about that, because if we know what the gap is we can develop plans and policies to meet those gaps.”

According to budget papers, there appears to be a number of contingencies in place in the 2021/22 budget. These include a £12.5 million COVID contingency, and a general contingency of £5 million. The papers say: “This is to cover the associated risks within the budget and will be available to adjust budgets if necessary. This first budget for the new unitary council has, of necessity, been produced on a summarised level, on a risk based approach.

“A contingency is required in order to be able to respond effectively to any unanticipated increases in costs or demand that cannot be managed within the budget. ”

Councillor Rebecca Breese, the portfolio holder for finance on the shadow executive, reassured Councillor Stone that the ‘best assumptions have been made using the available knowledge about demand’.

She said: “Of course, when this budget was prepared we hadn’t yet moved into lockdown number three, and it’s a constantly changing background. But we have built in some contingencies for those reserves. When you’re preparing a budget of course you have to make assumptions and do the best you can, and I think this budget does have that extra bit of flexibility that is going to occur.

“There will undoubtedly be bumps along the way but I’m confident that this budget will be able to cope with whatever is thrown at us next year. It’s a new authority but with the expertise of existing staff, so I do believe it’s a robust and safe budget.”