Blackpool Council looking to find £16m of savings as it publishes budget proposals

Blackpool Council needs to find £16m in savings during the next year as it prepares for the imminent budget for 2026/27.

The council’s Executive will consider the proposals next week, after the authority published details on Monday.

The council says this takes the total money it has saved over the last 16 years to £245.5m, which has also seen a reduction of a third of the council’s staff in that time.

No jobs or services are expected to be at risk this year and the council is not expecting to apply for Exceptional Financial Support from Government.

Nevertheless, it has been a challenging year for the council – the number of children in council care (per 10,000) continues to be the highest in England at 184 with consequential costs.

The costs of Child Social Care and Adult Social Care together make up much of the £16m the council needs to save this year, along with  home to school transport for children with disabilities.

Conservative opposition councillors have been vocal about the state of Blackpool’s finances, drawing attention to overspends.

However, Cllr Lynn Williams. Leader of Blackpool Council, says the authority’s current financial challenges needed to be seen in light of years of austerity from previous Conservative Governments, arguing that these took around £1.8 billion out of Blackpool Council’s coffers over 14 years.

The council is in active discussions with senior government figures before the final settlement – money the council is to receive from the government –  is delivered on February 9.

Blackpool says it has made as strong a case as possible to the government, outlining the fact that Blackpool is one of the most deprived town’s in the country.

Cllr William said: “Blackpool residents have had a legacy of being underfunded, leaving the town hundreds of millions of pounds worse off. That has meant reduced services for a town that the government’s own data says needs them the most.

“Our total social care bill now accounts for 75% of spending that this council does and is legally required to deliver. We invest the other 25% in services that all residents agree are vital, like looking after our parks, emptying bins and collecting rubbish, fixing our roads and keeping our libraries open.

“As always, we have turned over every stone to find the necessary savings, without cutting back on services or reducing staff numbers, while also continuing our vision of creating stronger communities and maximising job opportunities for local people to help us make Blackpool better.”

The council’s earmarked reserves are forecasted to be £19.2m with additional working balances for in-year pressures at £6.9m.

Following the recent Fair Funding Review, Blackpool Council’s core spending will increase by £5.4m this year, a real term reduction below the rate of inflation.

A plan to reduce the demand on statutory services by investing in new ways of working is included in the budget, to help residents become more independent and resilient and in turn reducing their need for those statutory services to intervene.

The council will also introduce a flexible use of its Capital Receipts Strategy in order to invest in its communities and save money in the long term.

This will involve looking at what non-operational land it owns that is not vital for Blackpool residents and disposing of it to fund the improved services.

For example, the sale of a small piece of land which fell inside the borough of Wyre was sold for housing, raising £10million for Blackpool Council.

A proposed 4.99% council tax increase will cost the average council taxpayer an additional £1.09 per week, however this contributes £4m towards local services.

Cllr Williams added: “I really understand times are hard for many people but we’re spending that money on services that people tell me they value and need like our parks, our libraries, our leisure centres and our Family Hubs, plus our free school breakfast scheme. They all provide free and discounted offers, services and events that everybody can benefit from.

“We’re also investing £131m in capital projects over the next three years that will regenerate Blackpool, like the 8,000 workers and students who are moving into the Talbot Gateway, the 5,000 local jobs being created at the Enterprise Zone, new youth services in Revoe, Brunswick and Bispham and providing new and affordable housing developments for people across town.

“We’re also increasing the support to families in crisis that means anybody who desperately needs support to pay bills can access it.”

Blackpool Council’s Conservative Leader, Cllr Paul Galley said: “This budget is a tragedy for the people of Blackpool, who are facing the highest level of council tax increases while receiving less services.

“Blackpool Council is now on a financial precipice, with debts of over half a billion pounds, reserves at record lows, and almost every service overspending.

“The Council’s only real hope of balancing it’s budget was securing around £30 million extra to bridge it’s funding gap, £5 million comes no where near what it needs to survive and next year’s increase from the Government is even worse at around £300,000.

“At such a worrying time, it is deeply concerning that the Council’s talented Finance Director is retiring. The Labour Government have let Blackpool down, this is not the change that people voted for. “

The proposals will be considered by Executive on February 10. If approved, the budget will be voted on at Full Council on February 23.