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Council tax and government bid amongst plans for Northamptonshire to tackle deficit

Northamptonshire County Council has announced it is considering applying to the government for use of its capital budget and sourcing an additional £6m in council tax in a bid to meet its savings target this year.

In the authority’s stabilisation plan released yesterday, government-appointed commissioners in Northamptonshire, Brian Roberts and Tony McArdle, are pursuing options including making an application to the Ministry of Housing, Communities, and Local Government (MCHLG) for “capitalisation dispensation,” which permits the council to use its capital budget to cover the unfunded deficit.

The stabilisation plan will also aim to make £20m in savings this year to balance the books. A reduction in agency staff and an increase to the council tax base are amongst the measures to achieve this.

The plan comes alongside the application to the MCHLG to address the £35m unfunded hole in last year’s budget.

In August the council voted in favour of proposals to create a unitary authority in a bid to make major savings. The financially-bankrupt Northants announced it will plough ahead with ‘radical’ service and job cuts the same month.

Leader of the council Cllr Matt Golby said: “These are unprecedented times for us and as such we need a robust plan to address the financial challenges we now face.

“The stabilisation plans published today alongside our latest financial reports show how we are now moving firmly towards stabilising our budget position.

“However, we are of course acutely aware that the challenge to deliver this plan is significant and as such we will now focus all our energy on doing so.”

Earlier this year, detailed financial analysis, undertaken at the request of the commissioners, identified a projected overspend of £30m in the current financial year unless action was taken.

Chief executive Theresa Grant said: “This plan is an important step forward for this council. We now have a firm set of proposals and new measures which can help us move towards stabilising our budget.

“It is critical that we continue to focus on delivering these measures and also on developing plans for the future so we can place our finances on a sustainable footing.”

Last month Grant, following her employment to the role in August, said that the CEO job was “fraught with risk.”

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