Spending Review to restore long-term financial sustainability

The review responds to a projected 40 per cent reduction in government funding, the highest planned borrowing levels in the Council’s history, and reserves that are forecast to run out within three years if urgent action is not taken.

It also outlines immediate steps already underway to reduce discretionary spend, refocus resources on resident priorities, and begin the process of returning the Council to a sustainable financial footing. A further report setting out the full package of measures will be brought forward later this year.

Councillor Peter Graham, Cabinet Member for Finance, said: “The Council faces a serious financial challenge that threatens its long-term sustainability. This Spending Review is about facing the facts, making hard but necessary choices, and ensuring limited resources are focused on the services that matter most to residents, clean streets, community safety, and core neighbourhood services, while protecting the Council’s financial resilience for the future.”

Key elements of the Spending Review set out at Full Council included:

Ending the Youth Bus service and relocating its equipment into youth centres.

De-ringfencing funds allocated to the Access for All, Cost of Living and Borough of Sanctuary programmes and returning remaining balances to general reserves pending a review of those programmes.

Removing five schemes from the new-build programme, Tyneham Close, Lavender Hill, Fitzhugh Estate, Ashburton Estate and Lennox Estate, avoiding approximately £77 million of future Housing Revenue Account borrowing and saving around £5 million a year in debt costs.

In the case of Tyneham Close, Lavender Hill and Fitzhugh Estate, clear technical advice from officers concluded that the schemes were not viable and should not proceed. Ashburton Estate and Lennox Estate will not be taken forward because the proposals attracted significant opposition from local residents.

Declaring Bradstow School land and buildings in Kent surplus and seeking disposal.

Disbanding the Leader’s Office team of six full-time staff.

Bringing forward proposals to consider consolidating office accommodation onto the Town Hall campus.

Resources will be refocused on resident priorities, including enhanced street cleaning, graffiti removal, waste services and enforcement in high-footfall areas, and additional police officers funded from Neighbourhood Community Infrastructure Levy following a review of existing schemes.

A full review of the capital programme, including further measures to reduce borrowing, will be reported to Cabinet in September.