Challenge every penny spent says council chief

A financial report to be discussed by city council’s cabinet shows that the council ended 2021/22 with a £4.5million underspend – however members will be advised that the authority's financial challenges remain.

Thenewswillbewelcomed by cabinet members at the meeting on Monday 20 June, with the underspend bolstering the council’s reserves.

It is a positive first step in line with the Improvement Plan which was approved by Full Council in December and looks to achieve financial sustainability.

However, in the report the council’s finance director Cecilie Booth warns that the city councilstillhasalongwaytogo.

She urges continued focus and discipline to deliver the

Improvement Plan and the proposalssetoutinthe2022/23 budget and cautions that Covid has to some extent masked the true financial position due to government grants which have helped delivering some schemes and projects.

The report reads: “The financial operating context for the council remains highly challenging with new uncertainties and risks creating additional pressures such as the exposure to inflation risk. The council must continue to challengeitselfonhoweverypenny of its money is spent.”

Last summer, the council changeditsapproachandcommitted to solving its financial challenges without external support, thereby using reserves to balance its budget at year-end.

The council committed to reducing its spending as much as possible to minimise using its reserves, including placing a freeze on all non-essential spending in November. The authority also paused several capital investment schemes.

CouncillorAndyColes,cabinet member for finance, said: “This report shows that we are moving in the right direction towards becoming a more financially stable council and that is great news.

“I must pay credit to our staff who managed to deliver significant savings from the point we put a freeze on all but essential spending. Many of them have come forward with their own suggestions to make savings and we are looking at those.”

The £4.5million underspend has enabled the council to increase its general reserve balance by £1.3m to £7.3m, as it increasestheamountofmoney it has for unforeseen events.

An additional £3.2m has also been added to an inflation reserve which now stands at £4.7m, to mitigate the financial risk from rising inflation.