Draft budget proposals protect services despite funding pressures

03 December 2024

Essential public services across West Northamptonshire will be protected from cuts in the financial year ahead, despite the council continuing to face significant funding and demand challenges.

West Northamptonshire Council (WNC) has set out its draft budget for 2025-26, with a range of proposals that address a multi-million-pound funding shortfall without reducing the delivery of services to residents.

Like other local authorities across the country, the Council continues to face severe financial pressures due to factors such as an increase in costs and demand for services, particularly around supporting children in care, vulnerable adults, people facing homelessness and home to school transport.

Despite these pressures, the authority is on course to set a balanced revenue budget for 2025/2026 of £933.8m (£427.7m excluding Dedicated Schools Grant). Having initially forecast it would face a £53m funding shortfall for 2025-26, the Council embarked quickly on an early review of its budgets, reducing the overspend to £39m by July, followed by a further major drive over the autumn to close the gap and deliver a balanced budget.

The draft revenue budget will initially be considered by WNC’s Cabinet members next week, (Tuesday 10 December), with a six-week public consultation launching the following day (11 December) when residents will be encouraged to have their say ahead of the final budget going to Full Council in February.

Key to helping the Council protect essential services whilst balancing the books in its fifth year as a unitary authority is the income it receives from Council Tax. The draft budget proposes to raise Council Tax by 4.99%, including 2% going towards adult social care as specified by the Government. This increase, in line with last year’s, would mean an average rise of £1.71 per week on a Band D property yet would contribute around £19m a year towards services.

The Council has also continued to review, restructure and transform services within the organisation to find better, more efficient ways of working without adversely impacting the services it delivers to residents. These initiatives are set to achieve efficiencies of around £26m next year. The proposals also include a full review of fees and charges where appropriate to keep up with inflation and to ensure they fairly reflect today’s operating costs.

The draft budget also proposes that WNC invest over £155m in its capital programme over the next four years, to improve local infrastructure and assets such as land, buildings and equipment. The Council will also be investing in accommodation to reduce its reliance on expensive private placements. Additionally, the Council will spend an estimated £20m in public health support which is funding from the Government in the year ahead to progress a range of schemes aimed at improving residents’ wellbeing, reducing health inequalities and continuing to support communities.

There are also proposals how the Housing Revenue Account (HRA) should be funded in 2025-26 – this is money spent on maintaining and improving social housing, including building new homes. There are plans to invest £77m in social housing during the next financial year, which forms part of a total five-year capital programme amounting to £261m.

“With the continuing pressures on public sector finances, setting a draft budget that balances has been both challenging and complex. The approach taken in previous years has been repeated in that productivity improvements have remained the key to offsetting the financial pressures brought on by increases in demand-led services and the broader cost base.

“WNC has done everything necessary to bridge an initially significant shortfall whilst ensuring that the needs of residents remain at the forefront of the decisions and actions. By responding as early as possible to the budgetary pressures and being planned and prudent in the approach, WNC has been able to continue the pattern of the past four years in delivering proposals for a balanced and deliverable 2025/26 budget.”Councillor Malcolm Longley, WNC’s Cabinet Member for Finance

IN addition to these budget proposals, we have also published today our plans for a £100m capital investment programme for 2025/26 and our Housing Budget for 2025/26, which includes plans to invest £77m in social housing during the next financial year

The draft 2025-26 budget proposals will be considered by our Cabinet next Tuesday (10 December).

Public consultation on the proposals will launch on Wednesday, 11 December, when further information on how to get involved will be available on the Council’s consultation hub.