Council’s budget deficit should now be covered
Worthing Borough Council’s budget deficit should now be covered by reserves, a council cabinet member has revealed.
Cabinetmemberforresources John Turley (Lab, Gaisford) told Worthing’s joint strategic sub-committee that reserves were now projected to cover the council’s forecast £1.54million revenue budget shortfall.
Thecouncil’stotaloverspend for 2024-25 was forecast to be roughly £2.7million. In November, it was down to £1.54million through savings found in the budget. Now, the council has revealeditsreserveswereforecast tocoverthatshortfall,balancing its budget and leaving an overspend of roughly £200,000.
Budget details were heard behind closed doors again on Thursday, December 7, at Worthing and Adur councils’ joint strategic committee meeting.
Worthing opposition leader Kevinjenkins(con,goring)said budget meetings had not been held behind closed doors for at least 20 years, and added the current Labour administration filing a late budget last year contributedtothecurrentposition.
Mr Turley said the council was making a budget with no ‘resilience’ and would need to wait until the government’s settlement at the end of the year to determine final budget numbers.hesaidthecouncil’sfinancial position ‘only just’ covered the deficit and the review into council services and assets to find savings was ‘ongoing’, adding another ‘unexpected shock’ could send the budget back into thered.neighbouringadurdistrictcouncilhassaiditsfinances are on track after ‘difficult decisions’ were made.
At the end of June this year, the council was forecasting it would be £254,000 over budget for the financial year because of unexpected increases in costs. Since then, officers have identified further opportunities to reduce costs and make savings so that by the end of September around £287,000 of savings had been found – resulting in a forecast underspend of more than £30,000.
A council spokesperson said: “Tackling homelessness and supporting those unable to afford their rent because of the national restrictions on housing benefit is expected to cost the council more than £530,000 overwhathadbeenbudgetedfor. However,delayingsomeprojects hassavedthecouncilanestimated£344,000,whileincreasedcar parking income, lower maintenance costs and higher interest rates on its investments have also helped. The council is facing tight financial restrictions caused by a reduction in central government funding and increasing pressure outside of its controlfrominflationandcostof living challenges, like every other local authority in the country.
“It is continuing to prioritise itsspendingthroughnewtighter controlsonexpenditure,making savings in staffing and resources,andpostponingorcancelling some less vital work in favour of fundingfrontlineservicesforthe community.”
Adurcouncilleaderneilparkin said: “This continues to be a very challenging time for the council financially because of factors outside of our control.
We have had to make some difficultdecisionssofarin2023but this has meant we have gained a firm grip on spending and can be confident about our services over the coming months.”