Council will end year £2.5m over budget (From Thisisdorset)

Council will end year £2.5m over budget

7:00am Wednesday 1st October 2008

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BOURNEMOUTH council is feeling the squeeze from the credit crunch, finding it difficult to collect council tax and paying out more money in housing benefits.

Other pressures include a reduction in planning application fees and fewer people using council car parks, thought to be a result of the introduction of free bus travel.

A financial report to councillors reveals that Bournemouth is currently set to end the financial year £2.5 million over budget.

And in a bid to generate more cash and balance the books, residents could be hit with a hike in council charges and fees.

Senior officers have all been warned that their departments must come within budget by the end of March - even if that means increasing fees by more than 2.5 per cent.

Officers have also compiled a long list of proposed "efficiency savings", which include closing the Kings Park mini household recycling site, reducing the frequency of emptying litter bins and closing half of the town's toilets.

The report, which will be considered by the council's administration and value for money overview panel next Thursday, states: "Bournemouth, like many other local authorities responsible for council tax collection, are experiencing increasing difficulties with regard to council tax collection in the current economic climate."

It adds that other potential pressures are the collection of business rates, housing and council tax benefits, homelessness and land charges.

The report states: "Budget performance in recent years has indicated that some business units have struggled to deliver their income targets.

"To manage any budget gap, service directors should consider increasing some fees and charges by more than 2.5 per cent, implementing new fees and charges, restructuring fees and charges or alternative budget savings."

Cllr John Beesley, deputy leader of the council, played down the difficulties in collecting council tax, saying the full picture is not yet known.

He criticised the government for not acknowledging the financial pressures local authorities were under but insisted he still expected the council to stick to its budget.

"I am confident that officers and members working together will achieve that," he said.

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