Southampton City Council is facing a daunting financial challenge as it seeks to plug a £40 million deficit in its finances for the upcoming year. Despite unveiling an extensive series of cost-saving measures, the council still finds itself £10 million short, according to a recent report.
The council recently introduced a comprehensive set of 28 savings projects, spanning across seven key sectors including adult social care, children’s services, waste collection, and council housing. These measures aim to address the council’s long-term financial instability. However, the report highlighted that while the council needs to generate £42.65 million to balance its books for the next financial year, the proposed savings would only yield £32.05 million, leaving a substantial gap of £10.6 million.
Council Leader Lorna Fielker expressed confidence in the council’s efforts despite the shortfall. “We’ve worked really hard on these plans so I’ve got confidence that they’re going to deliver what we’ve asked them to deliver,” she stated. “But we have to remember that we do need to also manage that rise in demand and increased costs as well. So we will continue to work really hard on this; it is not something that starts and stops. We will continue to have a very strong focus on finance.”
However, not everyone shares Fielker’s optimism. Deputy Tory Leader Jeremy Moulton criticised the plans as insufficient and lacking in detail. “It doesn’t look sufficient; it looks too little, too late,” Moulton remarked. “We haven’t even got the detail on the breakdown of the savings that are planned which is what they actually represent and whether they’re practical and what the impact on residents will be.”
The council’s transformation plans are expected to be implemented over the next three years, with further savings anticipated beyond this period. The most significant proposed savings are in the area of adult social care and health, where the council projects it can save £14.65 million. Fielker acknowledged that the council had not adapted as quickly as other local authorities in this area, leading to overspending.
Additional savings include £7.9 million in children’s services, £1.8 million in schools and special educational needs and disabilities, and £11.3 million in resident services, including council housing. While these measures suggest a shortfall for the 2025/2026 financial year, the council report indicates that by making these changes, annual savings could reach £41.6 million by 2028/2029.
Looking ahead, Fielker noted the potential support from the new Labour Government, which she believes would provide multi-year settlements to aid in better future planning.
The transformation plans are scheduled to be reviewed by the council’s overview and scrutiny committee and cabinet before being submitted to the Government by August 27.
In conjunction with the transformation programme, the council has also introduced a new Southampton City Plan, outlining its long-term objectives for the next decade. This ambitious plan aims to guide the city through its financial challenges while striving to improve services and infrastructure for its residents.
As Southampton grapples with these financial difficulties, the council’s ability to effectively implement and manage these cost-saving measures will be crucial. The community will be watching closely to see if these efforts will suffice in closing the financial gap and securing a stable future for the city. Future developments, particularly the response from the Government and the Labour Party’s proposed multi-year settlements, will play a significant role in determining the success of these initiatives.
The council’s ability to address its financial woes through effective management and strategic planning will be vital in ensuring the continued provision of essential services to the residents of Southampton.
