South Gloucestershire Council warns of cuts to services and job losses

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South Gloucestershire CouncilImage source, Google
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Proposed services cuts and "income opportunities" are being developed

A council has warned of cuts to services and job losses after it revealed a £29.3 million shortfall in the budget for next year.

South Gloucestershire Council said the cost-of-living crisis and rising demand in social care is to blame.

Papers going to cabinet on Monday mention potential changes, "which may result in redundancies at the council".

The council said it is in a "relatively good starting position to manage the challenge".

The cabinet report said: "The council continues to aim to minimise the number of redundancies through maximising opportunities to use natural turnover in the organisation, coupled with skills development to move people between roles, wherever possible."

According to the Local Democracy Reporting Service (LDRS), the forecast assumes council tax would increase by 1.99%.

'An unprecedented storm'

Conservative Council leader Toby Savage said: "We knew earlier in the year that financial pressure was building.

"But, an unprecedented storm of global events leading to the cost-of-living crisis, alongside rapidly increasing demand on council services, means we now have to look across the board at all service areas."

Surging energy costs will add £2 million to the authority's bills, with its two-year fixed rate tariff for gas and electricity coming to an end next April, with inflation expected to increase running costs by another £10 million- £15 million.

The nationally negotiated pay offer for staff requires the council to find an extra £6.4million, while it says growing demand on existing services means costs to deliver these would go up by about £8.5million every year.

Capital costs - for large-scale projects such as roads, schools and other major one-off schemes - have already escalated and could continue to go up if soaring prices for materials do not reverse.

Proposed services cuts and "income opportunities" are being developed to be presented to cabinet in December, followed by a public consultation on any changes.

"No one wants to have to do this and I'm acutely aware this comes at a time when people are increasingly struggling to make ends meet too," added Mr Savage.

"Support for people who need it most will be prioritised."