Staffordshire County Council ends first quarter of financial year with £250k underspend
Staffordshire County Council’s finances remain in the black at the end of the first quarter of this financial year – but the new Reform UK administration is pressing on with plans to review spending.
The council ended June with a £250,000 underspend, members of the new cabinet were told at their latest meeting on Wednesday (July 16).
The first quarter of the financial year started in April, when the previous Conservative administration was in charge. The authority came under the control of Reform UK in early May, following the party’s landslide victory at the county council elections.
Council leader Ian Cooper said in a report to the cabinet: “We are determined to deliver on our priorities, which include caring for the elderly, fixing our roads, looking after our children and delivering prosperity through responsibility. Highlights in quarter one included a ‘good rating’ from the Care Quality Commission for our adult social care services and the successful delivery of several major highways improvement schemes across the county.
“Delivering on our priorities for our residents means doing and spending what is needed. However, we have pledged to examine closely how the authority allocates and spends its money which we will continue to do.”
Councillor Chris Large, cabinet member for finance and resources, told fellow cabinet members on Wednesday: “The latest forecast on the revenue budget is an underspend of £250,000, which is 0.03 per cent of our budget. This demonstrates strong financial management as services are keeping within their budgets.
“The financial health indicators are showing green ratings, which further underlines the robust financial management that we have in place.”
The authority continues to face financial pressures from the increasing cost of social care for both adults and children however, cabinet members heard. Rising demand for support for children with special educational needs and disabilities is also a challenge, and there continues to be a massive overspend in a funding pot which is currently considered separately from the rest of the council’s reserves.
Councillor Large said: “The overspend on the High Needs Block is forecast to be £38.5m this year – this will increase the DSG (Dedicated Schools Grant) deficit to £90m by the end of the year. The extension of the statutory override means that this deficit does not yet have to be funded by the council tax payers of Staffordshire.
“Savings being required by the NHS are likely to have a significant impact on council finances in the health and care directorate.
“We are able to control our spending within agreed budgets, but this administration wants to review how we allocate that expenditure in the first place. We will also continue to look at where efficiency savings can be made and where wastage and duplication can be removed.
“We are determined to provide a value-for-money focus on delivering the core services that matter to residents. To support this, we need Government to move to multi-year spending plans; this will allow for longer-term planning and focus on investing in the council services that make a real difference to people’s lives.”
