10 Nov 2024
The first signs of the budget-balancing challenge faced by St Albans district council in the coming year have been revealed.
Wednesday’s meeting of the housing and inclusion committee highlighted SADC’s financial position for 2024/25 and prospects for budget setting for 2025/26.
It is the first opportunity for a council committee to consider and debate options to close the budget gap, a new process introduced by the administration and revealed in last week’s St Albans Times.
The estimated budget gap for the council’s General Fund – which provides services including waste collection, leisure centres etc – has been reduced to £0.2m from £0.65m, although this will be subject to the Local Government Financial Settlement and inflation.
The pressure in the budget for 2025/26 comes from a combination of cost and pay inflation in excess of expected increases in government grants, council tax and some fees and charges.
A report from assistant director for finance Linda Parker warns: “It remains concerning that having absorbed several inflationary pressures, there are very limited choices about what can be removed from this council’s overall spending without substantially impacting on the community and the residents of St Albans district. There are no easy options or a range of choices other than to make some significant changes to income and expenditure to close the budget gap.
“The council will need to consider all the services it provides, and some services may need to be reduced, even though they may be important to some residents, to reduce the cost base for the council.”
For the current financial year, there is an overspend against budget of £0.6m, with income shortfalls partly offset by cost savings. Shortfalls include a £0.2m shortfall in parking income and a £0.6m shortfall from commercial rent and utility costs from vacant space – which would be mainly from Jubilee Square.
The commercial space at Jubilee Square is still being actively marketed, and discussions are ongoing with prospective tenants.
In preparation for setting the budget for 2025/2026, there have been several internal meetings primarily aimed at identifying options that could be included in savings and income proposals to contribute to setting a balanced budget. Further reports regarding these proposals will be discussed at future committee meetings, although those affecting the housing and inclusion committee were due for consideration at this week’s meeting.
Cost-saving measures which were considered but will not be progressed include a reduction in CCTV, the removal of all community grants, and scrapping grants to St Albans Citizens Advice and Communities 1st related to the provision of advice, guidance, information and advocacy services.
The only proposal to move forwards will create an annual saving of £3,380, and will see a slight reduction in the budget for revenue and project-related community grants, smaller sums available for each application, and a move to project funding only, instead of grants for running costs.
Meanwhile, agenda papers for next week’s public realm committee meeting include proposals to increase garden waste charges to £66 for the first bin (up from £63) and £110 for a second bin (up from £105), with a projected revenue boost of more than £35K for next year.
The committee’s budget proposals include an annual saving of £134K, reflecting the full year effect of changes to parking fees that were implemented part way through 2024/25 – subject to the outcome of public consultations.
Income opportunities from three more events in Verulamium Park are also to be investigated, on top of Pub in the Park, St Albans Fireworks Spectacular, St Albans Half Marathon, Race for Life and Comedy Garden.
Council-owned public toilets will also be refurbished, with individual unisex facilities introduced at several sites, including three cemeteries.
Long-term, SADC will be investigating devolution of responsibility for public toilets to parish councils, and pursuing initiatives to encourage alternative provision across the district.
Proposals rejected by the committee included scrapping the St Albans Feastival and Christmas Cracker events, closing all public toilets and stopping all spending on Christmas lights.
