A senior Finance Director for East Riding Council says there are improvements after September's budget.
The general fund revenue budget has seen a significant improvement since the last report, which was based on the position as at the end of June.
Those are the thoughts of Finance Director Julian Neilson, who added that the forecast now is a new £200,000 surplus on the general fund budget, compared with a £3.6 million forecast deficit in the previous report:
"Overall really good news on this is a much stronger financial position forecast than last time.
"But I must as ever forewarn of headwinds coming really with the fair funding review that is planned to be implemented for 26-27. We are awaiting a policy announcement from government in the autumn budget and the local government finance settlement in its provisional form before Christmas.
"Which we are forecasting to have a significantly adverse effect for the share of revenue funding that we are able to retain as a local authority. So we have to have a really sharp high on the the areas of services where they are forecasting deficits because the surplus issues in other directorates.
"That's often a temporary issue because it because it's savings being delivered ahead of planned savings for the next financial year."
The director added that the position reflects deficits of £5 million on service budgets and £1 million on grant funding budgets.
But that's offset by surpluses of £4 million on workforce transformation costs, £1.7 million on contributions returns, contributions to reserves and £500,000 on capital financing and interest receivable, in terms of the service budget position, although we've seen a deterioration in the forecast deficit on adult social care and health that has been more than offset by a a strengthened financial position in children, families, in schools, where the deficit is reduced by £800,000.
He also advised that communities environment where the surplus forecast has improved by £1 million and in planning economic regeneration where the forecast surplus has improved to a £1.6 million surplus.
The officer also sounded a cautious tone:
"We need to be really careful in how we step through this forthcoming budget process. And right those challenges really we're in going in the right direction.
"The spending controls, savings and the engagement with the savings board and transformation board have had a positive result on the position so far. But significant challenges to come on the general fund revenue budget. In terms of the school's budget funded by the Department for Education, it's a forecast deficit of £18.7 million, very similar to the previously reported position."
Most of that relates to forecast expenditure on the enhanced education provision for pupils with high needs. The director says that is due to inadequate funding levels provided by the Department for Education, reflecting a national position experienced at many other councils across the country for many years.
And there is a cumulative deficit now on the dedicated schools grant reserve of £54.6 million, which represents the forecast shortfall of funding cumulatively over many years from the Department for Education. A white paper from the government on these issues is expected in the new year.
Record Multimillion-Pound Investment Promises To Fix North Yorkshire's Roads And Potholes
North Yorkshire Police Emergency Call Waiting Times Remain Low Despite Surge In Demand
Row Over £20,000 'Incorrect' Public Toilet Charges in Whitby
'Strong Fish Smells' Spark Objections To Seafood Business Application
Maternity And Neonatal Services Face £736,000 Funding Gap To Meet New Safety Standards
Concerns Raised Over Tourist Tax Powers In North York Moors National Park
Educational Outcomes For Coastal Children To Receive Major Boost Under New Pilot Scheme
Special Train Journey Evokes Precious Memories For Dementia Patients On The Yorkshire Coast
Free Flu Vaccines Will Be Available At Drop-In Clinics Along The Yorkshire Coast
Extracurricular Opportunities Set To Expand For Pupils In Scarborough And Whitby
Time-Travelling Children Uncover Scarborough's Geological Past
Solar Panels Confirmed For Whitby And Eastfield Public Buildings To Cut Energy Bills
Comments
Add a comment