SHOCK cuts at Worcester City Council are now set to hit £4 million by 2019 - deeper than first thought.
A new financial blueprint has now been published, revealing:
- Buildings will be sold off and use of the historic Guildhall explored to see if it can generate money
- Charges for car parking, sports centres, cremations, planning applications and rubbish collections for private companies could all rise to plug the gap
- The cuts will be front-loaded, with £2.4m being saved over the next two financial years, triple that in later years
- It will lead to contracts being negotiated, extra job losses, more flexible working for staff, a focus on bringing down energy bills and less reliance on paperwork
Your Worcester News first revealed in September how bombshell cuts of at least £3m were likely to be on the way by 2018.
Under the Medium Term Financial Strategy, a document setting out the savings published yesterday, it now says £3.6m will be needed by then - an extra £600,000.
Council bosses have also decided to tag on an extra year, taking it to 2019, and say another £400,000 is likely to be added on top, bringing the total to £4m.
All council buildings are being examined to see if any can be sold privately, bringing in extra money and reducing insurance, electricity and insurance costs.
A review has also launched over key income streams to see if they can bring in more funds on top of the £7.7m they generate at the moment.
The council also wants to push the Guildhall as a wedding venue after it gained its licence earlier this year, and explore ideas for renting it out.
It could affect parking, which still the biggest income stream despite prices being slashed as low as 40p for half an hour and £1 after 7pm back in January to help traders.
Planning applications, charges for private firms’ bin collections, crematorium fees, building control and leisure centres are also in the running for possible rises.
The report says service reductions are also “inevitable”, and job losses are likely, saying a “radical approach” will be needed to balance the books.
Councillor Richard Boorn, cabinet member for finance, said: “We are clearly in a difficult position but are putting together a budget that will stand the test of time and make sure this council is still there to serve the city.
"When it comes to the buildings (if we can sell any) it means we don't have maintenance, insurance and other costs on them, it's as simple as that.
"But even when you sell any buildings, that leads to a capital receipt and we can't rely on that as a useable budgetary income because it won't come back again."
He said the budget was about "a sustainable plan to survive" amid tough reductions in cash from the Government.
Battle lines are already being drawn with the rival Tory group over aspects of the plan.
But Councillor Marc Bayliss, Tory group deputy leader, said: “Looking at just the Guildhall issue, this is the jewel in Worcester’s crown - I’ve never supported renting it out.
"People have come up with all kinds of terrible ideas for it, but in my view it's there in perpetuity for the people of Worcester.
"If there were other uses I'd be prepared to listen to them but this is a listed building so I'd be seriously concerned about what could happen to it."
The city council say the main focus will be on pushing it for weddings for the immediate future, in the hope it could prove a money spinner.
For the first time, the authority has taken existing predicted income streams and budgeted for each one to reduce by one per cent - effectively 10 per cent over the next decade.
Bosses say in the past forecasted income has always come in under budget, meaning they have been facing an uphill battle each year just to stay on an even keel, and were at the mercy of the economy.
The overall strategy is based on predicted funding from central Government, with a grant settlement for 2014/15 due to be announced in December.
That means the exact savings are subject to change, and could get worse.
As your Worcester News revealed yesterday, council tax rises of 1.99 per cent are also pencilled in over the next four years.
The rises would mean just 6p a week added to people's bills for an average band D property, as the city council controls just 11 per cent of the bill.
It would be subject to approval by a majority of councillors when the budget is approved in February, and would start from April.
For the last three years, council tax bills have been frozen, with the last rise in Worcester being 2.5 per cent in 2010.
The Government sets any council tax rises at a maximum of 1.99 per cent - meaning any town hall wanting a hike over and above that must stage a public referendum first.
The Labour-led cabinet is meeting next Tuesday, at the Guildhall from 7pm, to discuss the strategy.
HOW THE CUTS WILL BE MADE
Year 2014/15 2015/16 2016/17 2017/18 2018/19 Total
Cuts £1.2m £1.2m £800,000 £400,000 £400,000 £4m
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