Political View: ​Tightrope of financial responsibility

Throughout the country local governments face the complex task of balancing budgets while meeting the needs of their communities. This involves careful financial management and strategic decision-making.

Revenue sources for local governments typically include business and domestic property taxes, and fees for services. These funds are used to finance essential services including waste collections to leisure facilities, parks and open spaces to environmental health, support for families and those in housing crisis, and social demands such as Adult Social Care and Children’s Services. Indeed, it is these two alone that take up almost 80% of the budget, with the added challenge of having unpredictable demands on further funding requirements.

Meaning rising costs and increasing demand for services often that can often outpace revenue growth, creating budget deficits. To address this challenge council’s employ various strategies, including Increasing tax rates, expanding the tax base, or implementing new fees set against expenditure reduction: Cutting costs through efficiency measures, service reductions, or layoffs.

Alternatives include increased borrowing money to cover short-term deficits, but this can lead to long-term debt burdens by seeking additional funding from the government.

Balancing local government budgets requires a delicate balance between fiscal responsibility and meeting community needs. It involves careful planning, prioritizing expenditures, and exploring innovative solutions to ensure financial sustainability.

The budget consultation which has just been launched offers clear but often unpalatable choices, including diminished community and leisure facilities, the closure of public libraries, and the mothballing of much-loved Lido.

This headline closure, capturing much of the public opprobrium is frankly preposterous, particularly at a time the city is seeing its indoor swimming pool demolished without any sight of a replacement on the horizon.

We remain unhappy with the Lido closure proposal and have suggested alternatives, however this is, of course, currently a consultative document, with several other budget proposals that are still under discussion that we do not agree with whilst still awaiting the final version of the budget from the administration following public consultation.

The public understandably will have many reservations, and these should be aired by taking part in the consultation process.

The Council wants to hear the opinions of residents, partner organisations, businesses, and other interested parties as part of the budget setting process. You can give your opinions by completing an online survey on the city council website –www.peterborough.gov.uk/budget and hard copies can be requested by emailing [email protected]. The consultation will launch on

Tuesday 17 December and close at midnight on 14 January.

The Joint Scrutiny Committee will consider the council’s budget and your feedback on 29 January, in addition to being submitted to the Cabinet on 10 February.

The public can affect the outcome of the budget negotiations: should council tax remain the same, with the cuts in services this will mean. Should the increase be limited to 4.99% to just hold the line, or should there be a higher increase in order services are both fully protected, and importantly improved in the areas that affect our feeling of wellbeing – protecting the Lido, having cleaner streets and improved leisure facilities, and seeing bold plans for investment in the future of our City; with an environment where public facilities and services are fit for our growing population.

Will the Council Listen though? Remember - this is a Labour budget, and they will be the ones accountable for it to Peterborough residents.