Merton Council is facing a significant challenge to balance its budget, requiring an additional £1.744 million in savings to be identified before the February Budget Council meeting. This figure was revealed during a recent Overview and Scrutiny Committee meeting, where council officials presented the budget and business plan.
The council has already identified £8.3 million in savings, but the shortfall necessitates further cuts. While £1.3 million in additional savings were under discussion, a substantial gap remained.
Despite the ongoing need for savings, council leaders expressed confidence in Merton's ability to meet its financial targets. This optimism is underpinned by a strong track record, with the Period 8 report indicating an 89% savings delivery rate. The report, which went to Cabinet in January, showed savings up to 89%
with expectations of further improvement by the year's end. Crucially, savings not delivered within a given year are normally delivered virtually in full the year after.
The final budget report to Cabinet and Council in February will be informed by the final local government finance settlement, signalling that the budget balancing is anticipated to occur around the February Budget Council meeting.
Members of the Overview and Scrutiny Committee were assured that the upcoming Budget Council would offer a comprehensive platform to scrutinise any proposed savings. The committee also agreed to its work programme for the upcoming year. Several topics were suggested for future discussion, including the Equality, Diversity & Inclusion strategy and a review of Member Survey results. The minutes of this meeting can be found in the OSC Call In Minutes.