Mini-budget impacts Eastleigh Borough Council’s finances

The meeting held by Eastleigh Borough Council on October 19 detailed how the mini-budget changed its medium-term financial plan (MTFP).

Now, the council says it needs to make higher than anticipated efficiency savings in the year 2023-2024, with an expected jump from £1.5million to £3.5million.

Leader of the council, Cllr Keith House, said: “In common with households across the UK facing a cost-of-living crisis, local government is being hard hit by the current economic turmoil caused by the government’s mini-budget, and councils across the country are having to take tough decisions.

READ MORE: Police catch 29 drivers speeding in Eastleigh

“Even with our strong commercial income, we will now have to manage some expenditure down.

“We will work hard to offset the worst of these impacts and continue to deliver the high-quality services our residents expect.”

The council now needs to “significantly reduce” spending over the next two years to continue delivering its services.

Key reasons the MTFP has needed to be revised include prolonged and higher than anticipated inflation, higher energy and fuel costs resulting from the Russian invasion of Ukraine, rising interest rates on borrowing, and reduced income as a result of the Covid pandemic.

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