Local Government Association Financial Gloom

The Local Government Association has come out with another gloomy report on Council finances.  It estimates that 60% of Councils will be under serious pressure in 2015/16.  Only 20% think they can cope financially simply through more efficiencies.  By now, I am surprised that figure is so high, as years of shrinking budgets have been the lot of most Councils for some time now. 

Looking at the suggested options in the report, I am struck that Brent has tried most of them.

Increasing fees and charges: Brent put up most of its fees and charges in 2011, and adopted a default of inflation or above increases.  There may be a few minor adjustments that can be made, but there is little likelihood of any significant rise in revenue.  Brent does not really have substantial assets to invest and gain further income that way.
Using Reserves:  Brent has historically had very low reserves.  They were only £7.5 million when the current Labour administration was elected in 2010, and it is only about £12 million now.  In 2010, George Osborne's "emergency budget" gave us a projected overspend of more than £7 million, and I would think the possibilities for future overspend are greater.  Those authorities that use their reserves can only delay the issue.
Increasing the Tax Base:  Scope for raising Council Tax is limited by the referendum criteria.  Building new homes increases the tax base, but is limited by lack of land, planning considerations and the vagaries of the market.
Reviewing the use of assets: The Council has had a policy of tightening its property management for some time.  The obvious big example is the Civic Centre, which was the centrepiece of a policy to reduce the Council's property portfolio.   However, Brent Council does not actually own many buildings, and disposing of them can sometimes run into planning and other problems.

In addition to these, Brent Council has engaged in a number of genuinely transformative projects.  Although the libraries have hogged much of the publicity, there have been other financially more significant examples such as the increase in recycling and a lot of the activity around adult social care, helping people to stay independent for longer.  There have been a few examples of ceasing to do things altogether, notably in the festivals strategy.  There will have to be more such examples over the next four years.