This afternoon papers for the City Growth and Resources Committee meeting on 5 December were published, with a report on the 2020/21 budget included on the agenda.
I would encourage you to take the time to read the report, which provides a detailed overview of the challenges we face from a financial perspective and, in response, the opportunities being developed to continue changing and improving service delivery.
We can expect media and public interest in the report and its content in the days ahead and I am keen to provide you with a summary in advance of those headlines.
As you are aware, in the current financial year a range of revenue generation and cost saving measures are being implemented to bridge a funding gap of £41.2m for 2019/20.
A combination of reduced grant funding coupled with increasing costs and rising demand led to the 2019/20 gap and those same factors will be pressures in the 2020/21 budget.
Due to the General Election, both the Scottish and UK budgets have been delayed. This leads to uncertainty for local authorities in terms of the funding settlement from the Scottish Government, so the report to committee next week is based on informed assumptions.
On that basis, at the moment we are predicting a gap in the region of £38m to be bridged in 2020/21. Financial challenges of this scale are forecast to continue for the foreseeable future and underline the importance of the transformation journey we are on and the efficiencies that must continue to be delivered to ensure a sustainable future.
The focus will continue to be on ensuring the best outcomes for individuals and communities and ensuring resources are being directed to the areas that will deliver for the people and place.
Demand management and early intervention will remain overarching themes and the natural contraction of the workforce, managed whilst maintaining the political commitment to no compulsory redundancies, has also been a central strand. This has been possible due to the increased focus on harnessing digital technology to better meet the needs of customers and staff by providing more efficient services, and through changing the way we work – breaking down siloes and working flexibly with colleagues. The recently approved new approach to the internal movement of staff underlines the proactive focus we have.
This is reflected in the report to be considered by members of the City Growth and Resources Committee next week. The paper is being brought before councillors to outline the approach and anticipated challenges for the new financial year, but it is important to stress detailed options will not be considered until full Council meets for the annual budget meeting in March.
In the interim period, there will be opportunities to provide input and feedback in your individual teams, clusters and functions as we work towards the final budget report.
During a period of stark public sector challenges, financial constraints and economic uncertainty Aberdeen City Council has led from the front to build for the future – physically, culturally and socially. We can take great pride in the ability to innovate and evolve that we have demonstrated. That journey will continue in 2020/21 and I thank you in advance for your support and continued dedication to serving the people and place.