COUNCIL tax increases, savings across services and through transformation, and selling assets will be the keys to tackling the financial plight facing BCP Council over the next 18 months.

That's the statement in a key report from the local authority’s chief finance officer, who said a balanced budget for the next financial year can be achieved through £42.6million of “savings and efficiencies”.

This figure equates to 16 per cent of the council’s £272million net revenue expenditure.

As reported, BCP Council applied for a capitalisation direction from government to borrow around £75million in the coming years, with £20million for the current financial year.

The Department for Levelling Up, Housing and Communities said it was ‘minded to’ the £20million award subject to strict conditions.

However, BCP Council is now looking into selling “non-strategic” assets to fund the transformation programme and avoid taking up the capitalisation direction.

A proposed schedule of assets to be disposed of has been produced, but this part of the paper is confidential and not accessible to the press or public.

Mr Richens’ report said: “Council will only be formally asked to dispose of the assets once officers have explored the feasibility of delivering within the required timeframe and prior to formal sale.”

The £42.6million is broken down into £32.4million of itemised service-based savings and efficiencies, £9.6million of at present unitemised transformation savings, £600,000 of unidentified savings in children’s services.

The paper, which is due to be discussed at scrutiny and cabinet meetings next week, said £4.6million of the service-based finance was “more challenging”.

Chief finance officer Adam Richens’s report said the latest four-year medium-term financial plan moves the council to a “significantly more sustainable footing” at a time of “significant uncertainty across the sector”.

The financial plan includes 2.99 per cent council tax increases for each of the next four years bringing in an additional £29million across this period.

The report said: “Cabinet has prudently positioned the council to deliver a balanced budget for 2023/24.

“The forecast funding gap has reduced from £36.4m to £16.4m to now zero through finding efficiencies and service reductions that can be delivered to reduce expenditure.

“Work will now commence on ensuring the deliverability of the assumed savings including any necessary public or employee consultation, to ensure that the savings are delivered by April 1, 2023, so that the full year effect of the saving is achieved.

“The balanced budget position should be seen in the context of the funding gaps being signalled by all local authorities at this time be that due to demand pressures or due to the impact of the cost of living.

“Work is also now required to determine the feasibility of bringing forward £20m of non-strategic asset sales by the March 31, 2023, to avoid drawing down on the capitalisation direction, if possible.”