Hertfordshire County Council finance leader calls for cuts amid £25m overspend projections

Steven Pilsworth, director of finance at the council, sent the email to colleagues asking them to cut internal spending wherever possible.

The email stated: “As you know, the financial position for all local authorities and public sector bodies is challenging. Fortunately for us, our good stewardship means that we are in a better position than many of our peers, but we are not immune from the headwinds of increasing demand, complexity and inflation. Consequently, I need to ask you to take some specific actions to ensure that we live within our means for the current 2024/25 financial year.

“Unfortunately, with only 26 days left until the end of the financial year on March 31, we are facing an overspend of nearly £25m.

“We have prudently set aside a contingency of £20 million which can offset some of this pressure, but we do need to ensure we bring our spending within that envelope and if possible, save some further money to guard against similar pressures next year.

“So, along with my colleagues in our Strategic Management Board, we need your help and commitment to stop any non-essential spend, however small, for the remainder of the financial year.

“We know this requires a big one HCC effort but equally we know that together we can do this. We have already made real inroads into our pressures with the Organisational Resourcing and recruitment prioritisation projects.

“We are transforming the way we deliver social care through our Prevent and Connect model and we have kept more children safely at home through Family Safeguarding. All this means that we have fared better than many other councils and we just need one more push to get us over the line.

“Everyone needs to play their part. There should be no spend requested or approved unless it is unavoidable to meet our statutory obligations. This covers capital spending too as well as our fee earning and commercial enterprises, which should look to maximise returns by bearing down on cost.

“I know from experience that it is staff throughout our organisation who know best where these incremental savings can be made, and we really appreciate your support. So please stop non-essential travel, don’t buy technology devices or software licences unless absolutely essential.

“Think twice about booking an outside event venue when we can host it at Robertson House or printing loads of leaflets that can go out of date quickly or be better promoted online.

“Use our internal skills if you need a design agency, photographer, or video production. By following this simple vision for OneHCC, we will find savings across the organisation, work in a more joined up and efficient way and ultimately protect essential services for our residents.”