A huge amount of money must be saved for Swindon Borough Council to be able to set a balanced, and therefore legal, budget next year.

Papers to be presented to the council’s ruling Labour cabinet next week show that council officers have already identified £12m worth of savings, but another £19m worth must still be found.

That brings the total savings needed to £31m, an enormous percentage of a revenue budget of around £180m per year.

One glimmer of hope for the council is that these figures will be made public before it learns what money central government will grant it – and the government’s recent budget announced more money for certain aspects of local government spending such as social care, homelessness and support for children and families with special educational needs and disabilities.

The council’s cabinet member for finance Councillor Kevin Small said: “We expect to know what that settlement is for Swindon on December 16, the last day Parliament sits before the Christmas recess.

“It’s not ideal that we have to come up with a budget before knowing the settlement, and I’m hopeful that we will see an improvement that might ease the gap a little.”

Cllr Small said that in 2013 around 45 per cent of the council’s budget came from central government grants, funded by general taxation, whereas now less than four per cent of its next budget will come from that source.

The budget will recommend that council tax increases by 4.99 per cent, the maximum allowed by the government, and the same increase levied for the last three years. It is made up of two per cent for adult social care and 2.99 per cent for all other spending.

And Cllr Small said he is giving serious consideration whether to apply for Exceptional Financial Support.

He said: “We would have to get government permission for this, it allows the council to sell capital assets, or to borrow against them, to fund spending on services, which isn’t normally allowed.

“It is far from just Swindon which might need this. Last year 19 councils were granted EFS and a survey of councils, like Swindon, which have social care responsibilities, said 44 per cent were considering the measure.

“It’s like an overdraft facility – even if we are given permission we will try and avoid if we can.”

Inflation, and the increase in the living wage, is a major driver for the need for savings, with staff pay, and paying for care workers in the private sector a very significant part of the council’s day-to-day spending.

Cllr Small said: “Every one per cent increase in costs needs an extra £1m in spending by the council.”

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