Barnet Council Cabinet Report 20 October - Financial Armageddon

Budget Headline Figures

·         Original Budget £225,537,000

·         Saving in Year One £20,828,000

·         Saving in Year Two £13,215,000

·         Saving in Year Three £12,121,000

·         Total Savings £46,164,000

 “4.3 The Catalyst arbitration, reported to Cabinet Resources Committee on 19 October, resulted in an additional cost estimated at £7m, which has had a significant impact on the earmarked risk reserve which now stands at £11.4m. The outcome of Icelandic Bank litigation remains the single most important financial risk facing the Council. The latest position is that hearings in the Icelandic courts are not likely to take place before January 2011. Authorities affected are continuing to work with the Local Government Association to achieve the best possible outcome. Regular progress reports are provided to the Cabinet Resources Committee.”

The above is a quote from the Cabinet Report which you can read online here.

Staff briefings are underway across all Directorates. Some Directorate are taking a bigger hit than others, this is in part due to grant funding reductions.

First I think it is important to recognise that the budget process is starting a lot earlier than usual, in the past we have not seen any proposals until early January.

The report does not clearly identify individual posts but it is clear that in the worst case scenario 430 Full Time Equivalent (FTE) posts could be deleted by 31 March 2011.

At some stage the Council will start consultation with Barnet residents, now is our opportunity for staff and the Trade Unions to ‘get involved’ in the process.

A number of UNISON meetings are taking place. Please make time to attend.