Rushmoor Borough Council has approved a detailed financial recovery plan and its approach to improvement, following a change of political administration and an independent review of the council led by the Local Government Association (LGA).
At a meeting of the council’s Cabinet on Tuesday (15 October), members approved a detailed financial recovery plan outlining the steps it needs to take to secure its future financial stability and heard that a financial recovery working group has been established to oversee the plan. Members also approved a feedback report and action plan following on from a LGA Corporate Peer Challenge which took place in June.
Implementation of the financial recovery plan addresses the recommendations made to the council earlier this year following an independent evaluation by the Chartered Institute of Public Finance and Accountancy (CIPFA). This highlighted that the council needed to take immediate action to secure its financial stability and reduce levels of borrowing.
The council’s Medium Term Financial Strategy (MTFS) published in February had also identified that last year the council’s budget had been set using financial reserves and that it would be facing a revenue shortfall of over £19m over the next four years.
Councillor Gareth Williams, Leader of Rushmoor Borough Council said: “There’s no doubt that the council’s financial position is challenging, but we are committed to restoring financial stability, acting quickly and facing those challenges head on so that we can build a better Rushmoor. As part of this commitment, we are already working through the sale of assets to reduce debt as well as strengthening our governance arrangements and improving financial management and reporting.”
The council has established three priority work areas to help meet its saving requirements and to achieve financial stability. The first is through revenue savings by reviewing all spending and making budgetary reductions. Around thirty lines of enquiry and associated actions have been identified in the recovery plan, where the council believes that these savings can be achieved, and over £600,000 of savings have already been made in this financial year.
The second area of saving will come from capital receipts and a full review of the council’s assets such as commercial properties within its ownership. There is a target for selling £40m of assets, over the next three years. £5m of this is already expected to be achieved this year.
The final area aims to strengthen the council’s financial capacity and capability led by the council’s Executive Head of Finance.
The LGA Corporate Peer challenge took place in June over three days and representatives from the LGA met with a cross section of council staff and elected members to gain an understanding of the council’s work and completed a review of key finance, performance and governance information. On the final day, the peer challenge team presented their findings back to the council highlighting the key aspects of their findings and strengths identified, as well as ten areas for improvement. A full feedback report was received in August 2024.
In the report, the peer challenge team acknowledged that Rushmoor Borough Council has above average performance in some areas when compared to other local authorities of a similar size, highlighting services such as council tax and business rates collection, processing housing benefit claims and processing major planning applications. As well as strong examples of place shaping work and delivery shown by projects such as Union Yard, which is regenerating Aldershot town centre, the team recognised the council’s efforts to work with local partners showing positive community leadership.
Among the recommendations identified by the review team, four of these related to the current financial position and the need for swift action to put the council back on to sound financial footing. There was also a recommendation to establish a clear vision for the council’s future priorities for Rushmoor, as well as opportunities for officers and members to build relationships. Sharing of skills and the strong relationships that the council already has with community partners was highlighted, as well as the potential for the council’s internal structure to be reviewed, along with a refresh of internal communications and opportunities to share the council’s successes.
Councillor Gareth Williams, Leader of Rushmoor Borough Council said: “Having the peer review team with us was a really positive experience recognising the quality of the services we provide to the people of Rushmoor, but highlighting the precarious financial position we face.”
Councillor Williams added: “Significant progress has already made since the peer challenge visit, and as a new administration, I am pleased that we have been able to take positive steps to address these issues in a transparent and accountable way. We now have a robust action plan in place to help us move forward with the recommendations put forward by the LGA team, as well as a clear set of priorities and delivery plan which will be in place by the end of the year.”
Further information about the peer challenge and the full report is available on our Peer challenges of the council page.
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