Hounslow Plans Cuts and Raised Charges to Reduce Deficit

Hoping to bring in extra £12 million through savings proposals

Swimming fee increases at local leisure centres are expected to raise £200,000

December 14, 2024

A programme of savings is to be presented to a forthcoming meeting of the council proposing a range of measures to reduce the budget deficit by £12 million.

The One Hounslow Financial Strategy includes are range of service cuts, fee increases and proposals to increase council revenue to achieve the planned saving. The report is due to be presented to the council’s cabinet on 17 December.

It describes the council’s financial position as ‘very challenging’ due to combination of macro-economic factors as well as the increasing demand for social care for both adults and children which has risen significantly in the current financial year.

A third of the total will come from the already announced changes to working age Council Tax support that will bring in £4million but money will also be raised by reducing schools funding, transport for special needs pupils, increasing swimming fees and the rate charged for Fixed Penalty Notices.

The council is hoping to make an extra £200,000 by increasing the fees for swimming in local leisure centres. This is part of a general uplift of fees and charges that seeks to raise an additional £400,000.

£700,000 will be gained by a larger top splice of the Dedicated Schools Grant for Early Years and Central School Service blocks, a measure that has already been agreed with the Schools Forum.

Spending on Special Educational Needs transport will be reduced by £200,000 which the report says is enabled by wider operating model changes.

£276,000 will be raised by a review of the Fixed Penalty Notice fee model and another £200,000 would be cut from the budget by a dimming streetlights.

Smaller amounts have been earmarked from a £20,000 cut in the parks maintenance budget and a £30,000 reduction in spending on Area Forums although the current number of meetings will be maintained. £25,000 is to be saved by withdrawing the subsidy for the Prison Library Service.

Other measures include a reduction in spending on Christmas lights and a policy of not replacing trees when they are felled.

Despite these proposed cuts, it is still projected that the borough will need to dip into its reserves taking out £14.7million. Although there are adequate funds to cover this, it is pointed out that reserves will need to be replenished in the medium term.

The report has been made to give the Cabinet an update on the current financial position and how it has changed since the last One Hounslow Finance Strategy was published in July of this year.

It is not intended to be a full budget report but an update on savings identification ahead the Provisional Local Government Finance Settlement which is expected later this month. This will then determine the decision on the setting of council tax rates for next year with the maximum rise of 4.99% expected.