Published: Wednesday 14th September 2016 | 9.09am
Cannock Chase Council publishes their financial recovery plan this week which highlights the major funding deficit faced by the Council and potential savings options for public consultation.
The financial recovery plan provides the background information and specific savings options that Council Officers have identified. The savings options total £2.1m per annum and are in excess of the £1.6m minimum saving requirement. This means that a meaningful consultation can take place on the options to achieve a saving of £1.6m.
A large scale public consultation will commence on 23rd September 2016 for 6 weeks and can be completed online, on paper and in person. It is aimed to gauge public views and opinions of the future of council services, as the Council faces a major funding deficit.
The funding deficit has come about due to the reduction and removal of revenue support grant from Government and the premature closure of Rugeley Power Station which has reduced business rates income by 25%. With other funding changes, this means the Council faces a deficit that peaks in 2018/19 at £2.15m and with an ongoing deficit of £1.6m from 2019/20.
To help mitigate this deficit the Council requested transitional funding support from Government to bridge the gap until the proposed Mill Green Outlet Village opens in 2019. Unfortunately, the Council was informed in July this year that no support from Government will be made available in the interim period.
Councillor George Adamson, Leader of the Council said “The Council is facing the most difficult financial position ever. This is despite achieving £4.2m savings in recent years from partnerships with Stafford Borough Council, Wigan Leisure and Culture Trust and reductions in management and administration costs.
The complete removal of Government grant funding by 2019, the loss of business rates from the closure of Rugeley Power Station and the probable loss of £400,000 from New Homes Bonus scheme combined means that the Council now has to make some difficult decisions to balance the books from next financial year.
I am determined that this process will be open, transparent and a genuine consultation on which options the Council should select. I encourage everybody to get involved in this consultation and let us know your views.”
Tony McGovern, Managing Director said “Over the past four months, the Council has conducted a root and branch review of all expenditure and challenged everything it does. Some of this work has identified further areas where the Council can make savings through different and more efficient ways of working. Other options include proposals to reduce services in certain areas. There are a range of savings options identified for consultation which total circa £2m, from which the Council needs to select options totaling £1.6m.
We are publishing a level of information and detail which is unusual but demonstrates our commitment to do this in the public domain as many of the proposals would affect the public, if implemented.
The feedback from public consultation will be an important factor in making the final decisions in December 2016/January 2017.”
The public consultation will give local people and businesses the chance to have their say in the future of Cannock Chase and the District Council. The outcome of the consultation will feed into a draft budget for consultation in December.