In conversation with Paul Clarke, Director of Finance
This year’s council budget - which was published on Wednesday - sets out how we’ll rebuild Islington in the wake of the Covid-19 pandemic and support those who are hardest hit by its effects.
In today’s Friday Feature we get to know our new Finance Director, Paul Clarke and get the lowdown on the headlines from this year’s budget, our financial position and the outlook for the future...
Tell us a bit about you and where you’ve come from?
"I’m originally from Blackpool and I started as an apprentice with Blackpool Council straight from school at 16. Having a really supportive environment within the organisation meant I was able to work my way through my accountancy studies and pursue a career in finance. I moved from Blackpool down to London in 2015, living in Islington, not far from the Emirates – not that it's proper football outside of League 1.
"My previous role was as Deputy Chief Financial Officer in Barnet Council where I led on the insourcing of the finance service and overseeing the organisation’s financial strategy.
"Outside of work I’m a keen (but not fast) runner and cyclist and hopefully when the restrictions are lifted I’ll manage to get some more races under my belt."
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What have been your impressions of Islington from your first couple of months in post?
"My first impressions really reinforce my reasons for coming here. It is a borough I love and want the best for, plus we have a really fantastic management team driven by a concept of fairness. There is a pace and an ambition which I find extremely motivating and that is grounded in wanting to do the best for residents. I’ve felt so welcome from day one. In fact even before I’d started, colleagues had got in touch to introduce themselves and welcome me. On top of that, I’ve inherited a brilliantly talented finance team who want the best for residents so overall I’m really excited about our journey."
Has Covid-19 had an impact on our budget?
"Covid has had a huge impact on the council’s budget and will continue to do so for some time. Many colleagues have been grappling with the operational issues that it has caused - and doing a great job in doing so – but all of those operational issues have a cost implication.
"There isn’t a service area or a budget that hasn’t been impacted by the pandemic. We’ve seen increased expenditure and activity levels in many response areas of the council but then our income has also been impacted as restrictions have closed offices, leisure centres and high streets. Overall we think Covid will cost the council around £60m this year through a mixture of lost income or additional costs. Up to now Government funding, whilst needed and very welcome, has lagged someway behind our losses and going forward the impact on our residents, our businesses and our staff will be felt for some time."
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What is the council’s financial position?
"Overall the financial position is as good as can be expected. The country has seen an economic shock greater than anything that we have seen before. Because the council has been well run financially in the past we are better placed than most to navigate the challenges. That doesn’t mean it’s easy and we cannot be complacent in our cost management and delivery of savings.
"Overall we are able to set a balanced budget next year whilst making sure we are investing in the services and infrastructure which our residents need. We are, however, relying on colleagues across the council to deliver the £25m of savings and efficiencies needed to achieve that balanced position. This is a significant number and will require a lot of hard work and collaboration."
What are the highlights of this year’s budget?
"The focus of our proposals will be to rebuild a fairer society in the wake of the Covid-19 pandemic – and to support those who are hardest hit by its effects. The focus is on the council's four priorities:
- Homes
- Jobs
- Environment
- Community Safety
"Within the budget there are some brilliant schemes which as an organisation we should be proud of. Projects such as investing £17m towards tackling climate change, spending £80m on the new build programme delivering affordable housing to our residents and services, supporting prevention and early intervention giving people better life chances.
"In order to fund these investments and to continue to provide the wider range of services which our residents value, there are a significant amount of savings that are required – a total of £25m for 2021/22. In regard to Council Tax the budget does include a proposed increase and as such we also considered the impact that this may have upon our most vulnerable residents and set aside more funding within our Council Tax Support scheme."
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What does all of this mean for staff?
"There are a number of implications for staff. Clearly those involved in the services and projects I’d mentioned will see their day to day work shaped by the budgets aligned to our priorities. The challenge that Covid has presented to the sector’s finances means we all must work together and really challenge ourselves in the decisions we are making when spending our limited resources. The most important thing is making every penny count and getting the most value we can for our residents.
"A really key part of our Be Islington approach is to invest in our workforce, so additional budget has been earmarked for staff and manager learning and development and you’ll be hearing more about this soon."
What’s the outlook for the future?
"I’m an optimist generally and there are plenty of things to be excited about going forward in Islington but public sector finances at the moment are extremely difficult to predict. The Government has given us single year settlements for a number of years now which really impedes our longer term planning. Additionally with the amount of money the Government has borrowed as a result of the pandemic there will be significant debt and interest payments which the public sector will need to deal with.
"This inevitably will lead to a challenging few years for the sector and the country as a whole. It is really difficult to plan for what that might look like, so we must make sure our financial strategy and the decisions we are making day-to-day take account of the challenge that lays ahead."
Read the full proposals
Thanks to Paul Clarke for taking us through this year's budget proposals. If you'd like to find out more, you can see the full papers on our website, or read our media release by clicking the link below.
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