8. Financial position
The over-arching impact on the council’s finances, along with all other local authorities, has been the reduction in central government funding as part of the programme of tackling national debt. From 2010/11 to 2015/16 the council had a 55 per cent reduction in general government funding to support service delivery, from £7.030m down to £3.164m.
The council has met this financial challenge to date whilst ensuring front line service delivery is not affected, but the challenge continues with the council finding it difficult to afford its spending plans against stated further government spending cuts, the added pressure of inflationary increases, continued low investment income, an increasing call on services, members’ ambition to enhance and improve services, and a wish to keep moderate increases in Council Tax.
The council’s Financial Plan highlights a funding gap of £2.6m by 2020/21 –to address this, the council has agreed a Transformation Strategy which outlines how we will deliver our purpose despite the budget gap, whilst playing an integral part in meeting this deficit.