Oxfordshire County Council focuses on reorganising as it battles a £16m Covid-19 black hole

Oxfordshire County Council, which manages everything from schools to road mending and social care, is struggling to find ways to manage a financial black hole of £16 million.
Oxfordshire County Council leader Cllr Ian HudspethOxfordshire County Council leader Cllr Ian Hudspeth
Oxfordshire County Council leader Cllr Ian Hudspeth

The council's leader, Ian Hudspeth said the shortfall, caused by extra spending and loss of income during the coronavirus pandemic, could worsen if a second wave forces a new lockdown.

The county reports this week a £51m shortfall caused by additional costs and lost income as a result of the virus. It has received £31m in recompense from Government and expects a further £4m but the remaining £16m has to be found somehow as the authority is legally bound not to overspend its budget.

Hide Ad
Hide Ad

Frontline, statutory services have to be maintained to protect the most vulnerable.

County Hall, headquarters of Oxfordshire County CouncilCounty Hall, headquarters of Oxfordshire County Council
County Hall, headquarters of Oxfordshire County Council

Next week's cabinet meeting is expected to approve measures to meet the shortfall. A spokesman said today (Monday) councillors would 'take a fresh look at services and find new ways of delivering them rather than following the route of cutting services'.

Among proposals are to freeze vacant posts, delay purchase of new equipment and 'simplifying' the way new programmes are delivered.

"The cabinet will be asked to approve around £15m of savings for 2020/21 to cover the majority of this shortfall - acknowledging that the overall situation could change for better for worse as the financial year progresses further," the spokesman said.

Hide Ad
Hide Ad

"COVID has presented opportunities for adopting new ways of working and making greater use of digital technology. For example, 3,500 members of council staff who normally work in the office are continuing to work remotely from home, which has resulted in a saving in utility costs across council buildings..

Councillor David Bartholomew, Oxfordshire County Council’s Cabinet Member for Finance, said the county had managed the extraordinary needs of the pandemic.

“Like other local authorities across England, we now find ourselves in a position whereby we are being asked to cover a significant proportion of the cost for this," he said. "In taking these steps to balance our books, we are doing our utmost to minimise the impact on our frontline services and to protect those who so badly need our support.

“We are continuing to... call on the Government for further funding for councils at this critical time.”

Hide Ad
Hide Ad

Council leader Cllr Ian Hudspeth, gave warnings of consequences of a second wave and future challenges. And he brought up the subject of unitary authorities which are being considered by government later this year. This could mean one or two authorities managing the work of Oxfordshire's county and five district councils. Cherwell would be absorbed into the new system with an HQ away from Banbury.

Mr Hudspeth said: “Further financial pressures will follow as we restart services in a COVID-compliant manner, such as operating home to school transport, with staggered school opening times and social distancing measures in place.

“The possibility of a second wave of the virus later this year, particularly if combined with a flu epidemic, would also place a huge strain on existing resources, especially if lockdown is required and services have to be stood down again.

“Moreover, there may well be significant costs in future years arising from COVID as a result of reduced business rates and council tax. When we get to winter and need to set a budget for 2021/22 and beyond, it is likely to be extremely challenging.

Hide Ad
Hide Ad

“There is an ongoing debate about how local government services in Oxfordshire could be delivered differently in the future to protect ourselves better from financial challenges. The Government is producing a White Paper in the Autumn about local recovery and the shape of local government across England. It will be interesting to see what emerges from that, and Oxfordshire’s councils are already engaging with each other in anticipation of that White Paper.”

Measures being proposed to the August 18 cabinet include:

* Possible £306,000 saving in utility bills and anticipated increases in utility rates not materialising

* A saving of £400,000 on expected work expenses

* Savings of £1.3m from Hospital Discharge Scheme funding with more to come from NHS England so council funding can be released temporarily. Some cost will be recovered from people towards the cost of their care when HDS ends.

* £500,000 reduced spend on health and care services

* Savings of £903,000 by revising implementation for the new family safeguarding model of delivering care, delayed because of Covid-19, reducing set-up costs and the project team

Hide Ad
Hide Ad

* £175,000 saved through reorganised redesign of youth services

* £500,000 in highways schemes will be moved to capital budgets

* £175,000 will be recouped from a vegetation clearance and sign cleaning project

* Delaying replacement of diesel vehicles with electric ones in Oxfordshire Fire and Rescue will save £200,000 and delaying delivery of a fire engine £130,000

Hide Ad
Hide Ad

* £230,000 saved by a review of roads and flood work teams.

A budget for 2021/22 and beyond will not be proposed until winter. These proposals relate only to the current financial year. Oxfordshire's net budget in February for 2020 - 21 was £476m.