Council books under budget
AUTHORITY’S ACCOUNTS £2.4M IN BLACK
SOUTH Tyneside Council is managing to balance its books despite financial pressures in social care and public health.
On July 11, the council’s cabinet received the authority’s draft 2017/18 out-turn statement – a document outlining council spending for the financial year ending on March 31.
Revenue pressures saw the council go £3.112m over budget in the areas of children and adults social care and health.
Inflated costs of social care were blamed on rising demand for out of borough placements and pressures in relation to disabled children, a report states.
Spending for economic regeneration also missed targets, with a £742k overspend.
However, this was allayed by a £4.375m underspend in a business and resources pot, with South Tyneside Council ending the year over half a million pounds under budget.
A report states key factors for balancing the books included “additional grant income” and “improved contract management”.
The authority’s capital balance also saw a total underspend of £1.224m which was linked to the “release of provision set aside in respect of equal pay”.
“This provision is no longer required as the time limit on claims has expired,” a report states.
Around £28.933m has also been provisionally carried forward to 2018/19 for several major schemes in the borough.
These include Decent Homes Service Standards (£4.959m), the South Shields 365 regeneration programme (£5.678m), Jarrow Hub (£1.061m), flood alleviation schemes across the borough (£1.541m) and an energy scheme (£1.517m).
Despite a mixture of overspends and underspends, South Tyneside Council’s housing pot ended the year £2.4m under budget.
A external audit on the 2017/18 outturn is expected to be completed by July 31 this year and returned to the council for approval.
A report adds: “The success of our financial planning and management during the year has resulted in a £0.5m underspend despite significant cost pressures and a continuation of the reductions in government funding.
“This means that we are able to increase reserves to assist in dealing with the future anticipated reductions in government funding.”