“There is much to be excited about in our city,” says an introduction signed by representatives of all political groups in Peterborough to a 28-page budget consultation that quickly descends into anything but as a barrow load of potential cuts in services are wheeled out.
Reducing the number of libraries from 10 to 3, handing over two council run leisure centres that form part of joint schools sites (Ken Stimson and Bushfield) and reducing museum and art gallery opening times from 6 days a week to 3 days a week is hardly the stuff of ‘excitement’.
But these are just the tip of a perilous iceberg which moves onto the suggested closure of four loss making cafes at The Lido, Flag Fen, Vivacity Premier Fitness, and the museum and art gallery.
“The city’s Lido swimming pool costs more than £400k per year to run, despite its relatively limited season,” says the joint statement signed by council leader Dennis Jones (Labour) and supported by Cllr John Howard (Peterborough First) and chair of the Financial Sustainability Working Group and Cllr Wayne Fitzgerald (Conservative) and also leader of the Conservative Group.
The civic leaders “believe the Lido has the potential to be an all-year-round facility, but to achieve this requires external funding. This proposal is to mothball the Lido whilst officers work to develop a new vision for the facility and seek to attract external investment”.
Unsurprisingly the headline grabbing thought is not playing out well – but maybe that was the intention. A wake up and smell the coffee moment to remind city Council Tax payers of the perilous nature of Peterborough finances.
MP Andrew Pakes MP has already reacted describing the Lido as “one of the crown jewels of Peterborough.
“I understand that money is tight after 14 years of underfunding but the proposal from the cross-party working group to shut the pool is unacceptable.
MP Andrew Pakes MP has already reacted describing the Lido as ‘one of the crown jewels of Peterborough’. Photo: Terry Harris“It would be a great loss to mothball this much-loved community asset. Following the closure of the regional pool last year, the Lido plays an even greater role in the fitness and wellbeing of our city.
“The council needs to look at all funding options to keep it open. I hope everyone will join me showing their support for the Lido”.
Pre-budget setting options are not new and indeed councils have a statutory duty to consult with their residents and you can’t beat a good headline grabber to get people’s attention.
“The goal is achieving financial sustainability which, put simply, means being able to deliver the services that our residents need with the money that we have available each year,” says the statement by the financial sustainability working group.
It is a cross-party group of councillors “working collectively to support the council’s move towards financial sustainability,” says the foreword to their report as if that alone offers mitigation in the blame game that will inevitably follow. Their report reminds us of their “collective responsibility” to deliver a balanced budget and the “unprecedented times for local government” and the challenges these present.
A report to Cabinet in November reflected a £19.7m gap in 2025/26.
City finances have been heavily scrutinised in recent years and the council only just steered clear of major Government intervention in 2021 but that did lead to the setting up of an improvement panel with the remit to secure financial stability.
This followed on from two independent reports which revealed that the financial challenges facing the council were “significant and urgent”.
Aerials of Peterborough City Centre and Railway Station. City Centre, Peterborough Wednesday 27 March 2024. Picture by Terry Harris.Peterborough has moved on, significantly, since then but as former prime minister Harold Macmillan once observed ‘events my dear boy events’ to explain sudden and unexpected changes in circumstances.
Whilst not quite the perfect storm, the city council accepts that when it set its budget in February 2024, there was a gap of £3m in 2025/26 but “this has increased significantly” because of the demand for services and rising costs not only this year but in the years ahead.
The council says these challenges include:
1: Adult social care service has received 2,580 new requests for support in the past 12 months – 18 per cent more than the previous 12 months. In addition, it has provided long-term packages of care and support for 467 new people – 17 per cent more than the previous 12 months.
2: Children’s services, a thousand more referrals were received in 2023/24 (3,708), than in the previous year (2,748). These are referrals highlighting concerns about a child.
3: There were 2,636 education, health and care plans (EHCPs) as of March 2024- a 20 per cent increase on last year (2023) and a 39 per cent increase over 5 years. This has an impact on the SEND budget and home to school transport.
⭐️ Save the Lido ⭐️
The Lido is one of our Crown Jewels. The cross-party Budget consultation says it may be mothballed.
That is unacceptable. Peterborough needs better.
The council needs to come up with a plan to save the Lido. pic.twitter.com/agUfLJgHke
— Andrew Pakes MP (@andrewpakes_) December 9, 2024
4: The number of people coming to the council as homeless has risen by 40 per cent from an average of 51 a week in 2021/22 to 70 a week in 2023/24.
5: The council has over £0.5bn of debt which is the result of funding the cost of new roads, schools, regeneration of the city and work on council properties. With interest rates remaining high, this impacts the council’s cost of borrowing.
“There is a pause on new borrowing to limit the impact of the higher rates, but there is still a need to refinance loans which have matured, and these are at a much higher rate than the current arrangements,” says the report.
“Like many households and businesses, the council also faces increased energy costs and rising costs of pay for our own staff and those who deliver services on our behalf such as care workers.”
At the same time, funding from Government and from Council Tax has not kept pace with the increasing demand for the services the council provides.
Peterborough City Council leader Dennis Jones. Photo: Terry Harris
“The council’s core spending power (measure of funding) is £860 per head of population and comparators receive £955 per head,” says the report.
“If the council was funded to the same level, it would have an additional £20m available to fund services.
“Reserves balances are incredibly low as they are forecast to dip below £10m, down from £70m at the end of 2022/23. Because of these factors the size of the budget gap for 2025/26 has increased to more than £20m.
“This means that we cannot continue to provide all the services that we have previously. Given the extent of the challenge, we have looked at how we can adapt and change the way we work to be able to make the most of every penny in our budget.”
Some of the cuts, expenditure and savings being considered include:
1: Cease funding two speed cameras. The income generated from the cameras does not come into the council, although the cost to run them does.
2: Ceasing the council’s internal courier service.
3: Reducing the cleaning schedule in the Central Park toilets and the city centre hot wash.
4: Removing the Gladstone lengthsman, and the Itter Park and Central Park winter attendants.
5: Devolving local sports facilities to community groups.
6: Reducing planting at the crematorium and amenity grass cutting.
7: Increasing the income target for parking services because of ‘improved performance’
8: Increasing debt recovery activity in relation to unpaid parking fines, increasing the number of parking officers enabling them to patrol in more neighbourhoods
9: Increasing the minimum fines for fly tipping offenders
10: Updating the home to school transport policy to ensure where children and young people are offered a place from the waiting list at their nearest school, transport becomes parental responsibility if the place is turned down.
11: Employing four additional council tax recovery staff at a cost of £150,000 to collect outstanding debt; improved collection rates and reduced debt balances will enable the council to realise a financial benefit, as a lower bad debt provision will be required.
Whilst not quite the perfect storm, the city council accepts that when it set its budget in February 2024, there was a gap of £3m in 2025/26 but “this has increased significantly” because of the demand for services and rising costs not only this year but in the years ahead. PHOTO: Terry Harris12: Due to changes in the occupation of Sand Martin House and other buildings, the specification is due to be reviewed again with a view to identifying further savings.
13: Currently each councillor receives £3,000 to spend on projects in their ward. It is proposed that the Community Leadership Fund will be reduced to £50,000 from £180,000 and the scheme will be redesigned. This will mean that bids from community groups will be considered by a panel of councillors which will meet annually to review the bids and agree on the award of the grants.
14: Bereavement Service – fees and charges and income generation This proposal is to increase cremation and burial fees by 10% and to review all other fees and charges.
15: A capital bid for £120,000 has been submitted to build a body storage facility at the crematorium. This will enable annual savings to be delivered against current gas usage as the cremators can be run more efficiently.
14: Reduction of 3 vacant posts across the legal services and delete two vacant posts- democratic service officer and executive & members services officer.
15: Constitutional Services – elections and to continue to use iPads at elections. iPads can significantly streamline the voting process as they offer a more efficient way to manage voter registration, verify identities and process votes. This technology can reduce the time voters spend waiting in line and make the voter experience more user friendly.
16: Procurement – a review of the council’s contracts register is taking place, assessing whether contracts are essential/non-essential, whether they could be respecified at a lower level and whether there is an opportunity to look at an alternative delivery model. Work is in its early stages, but opportunities have been identified which could lead to an ongoing saving of £3,000,000
17: Offices – to reduce the number of printers in council buildings by half. Hard postage will only be used when necessary and lower rates of postage will always be used where possible.
Cabinet will be asked to approve a consultation on the proposals, which address a budget gap of around £23m in 2025/26, at a meeting taking place at the Town Hall on Tuesday 17 December.
The report will ask residents to be consulted on the possibility of raising Council Tax beyond the referendum limit of 4.99 per cent to support the delivery of services.
Labour Shadow Science Minister Chi Onwurah MP and Andrew Pakes vists ARU Peterborough and the Regional College, City, Peterborough Friday 08 March 2024. The ARU is one of the successes of Peterborough. Picture by Terry Harris.“For every additional 1% council tax levied, just over £1m would be raised to support the delivery of council services and would cost a household £16.66 per year,” said a council spokesperson.
Councillor Mohammed Jamil, deputy leader of the council and Cabinet member for corporate governance and finance, said: “Not a week goes by without there being a story in the national media of a council which has issued, or is on the verge of issuing, a Section 114 Notice which pauses all but essential spending and involves government commissioners taking over the running of the council.
“This is not the case in Peterborough, and that is thanks to the hard work and determination of cross-party councillors and officers. However, it does mean that we have to be honest about the fact that we cannot continue to provide everything we have done previously.”
The public consultation will launch on Tuesday 17 December, subject to approval by Cabinet.
