€10 billion in savings: measures taken by the government against local authorities
The French government, through Bruno Le Maire, announced on Sunday 18 February the immediate cancellation of €10 billion in budget appropriations for 2024, a measure that mainly affects the State. Although the executive claims that these cuts concern only the State, local authorities will not be spared. In particular, the Green Fund for 2024 will be reduced by €400 million. Bruno Le Maire justified this decision by stating: “Less revenue must lead us to less spending. Less spending to meet our target of a 4.4% deficit in 2024. We earn less, we spend less. I think that’s a common-sense rule.”
What consequences for local authorities?
The consequences of this budget levy are manifold. According to the Practical Guide of the Directorate General of Local Authorities (DGCL), the allocation of the general operating grant (DGF) will be particularly affected, with adjustments that could lead to an average 5% reduction in local budgets. Local authorities will likely have to scale back some projects, postpone investments, or reduce operating expenditure. This could also lead to higher charges for local taxpayers to make up for the shortfall. These reductions will force local authorities to reassess their financial priorities and seek savings to offset this loss of funding.
Public figures have expressed their concerns about this situation. Some point out that local authorities, already under financial pressure, could see their ability to provide high-quality public services seriously compromised.
In the face of these challenges, Althéa can help you:
In the face of these challenges, Althéa, a consulting firm, supports finance and human resources functional departments in their transformation projects and offers practical solutions to help local authorities optimise their financial management. Among these solutions, two lesser-known but particularly effective assignments are highlighted:
Social Security Contributions Audit:
The audit aims to analyse and challenge payroll practices to ensure that only the correct social security contributions are paid, thereby avoiding overpayments.
Althéa uses a detailed approach to identify potential optimisations and savings opportunities. Althéa’s expertise not only helps detect areas for savings but also proposes specific, tailored improvements.
Thanks to this assignment, local authorities can expect to achieve substantial savings, often several hundred thousand euros. The action enables retroactive adjustments with URSSAF as well as direct implementation on upcoming payrolls, always with no impact on employees and only on contributions.
Recovery of Daily Social Security Allowances (IJSS):
The assignment consists of recovering uncollected IJSS from CPAM and other relevant bodies. Indeed, HR departments are often overloaded and do not always have the time to follow up on this topic. Many IJSS remain unrecovered.
Althéa implements a rigorous recovery process using high-performance tools such as REC IJ, enabling accurate reconciliation of absence periods and effective case follow-up with CPAM.
For example, a recovery assignment carried out by Althéa in a local authority with 5,000 employees made it possible to recover €350,000 over the last 27 months.
To find out more about our IJSS recovery offering: click here
What sets us apart?
What particularly sets Althéa’s offering apart is its business model based on results-based remuneration. This means that local authorities only pay for Althéa’s services if concrete, measurable results are achieved. This model is particularly advantageous for local authorities facing financial difficulties, as it requires no upfront cash outlay, while guaranteeing a net financial contribution in just 3 months.
In these times of financial uncertainty and in a context of increased budgetary pressure, it is crucial for local authorities to leverage every available financial lever. Local authorities must explore all possible avenues to optimise their finances. Social security contributions audits and IJSS recovery assignments, although often underestimated, offer significant financial levers.
Althéa, with its expertise and results-based remuneration model, is ready to support local authorities in this approach, enabling them to navigate these financial challenges successfully.
These assignments, backed by accurate data and proven methods, offer practical solutions to help local authorities maintain their financial balance despite the budget constraints imposed by the government.
Althéa in a few words
Althéa is a management consulting firm with more than 250 consultants and a triple expertise: consulting methodology, IT solutions & business.
We support our clients in their transformation projects across HR, Finance, Procurement, and Supply Chain, from defining the transformation roadmap to the operational deployment of projects.
To contact us: click here
Or contact one of our experts: Julien VERNAY or Milliana KANANE.
