In the most recent update, members of the council were briefed on the budget forecast for the conclusion of the financial year, providing positive news that it is anticipated to achieve a balanced position. This announcement comes at a time of concerns regarding the financial challenges faced by local authorities, potential service reductions, and significant increases in council tax.
Angie Sinclair, our Director of Finance, has projected that the revenue budget of close to £700 million is on track to achieve a balanced position by April, despite a minor projected overspend of £291,000. Her report, offering an overview of the current financial year up to January, presents an optimistic outlook for the remaining two months.
Sinclair acknowledged the financial difficulties encountered in adult social care and services for children and young people, although she also emphasized the continual efforts of the entire organization to achieve a balanced position by the end of the year. She commended the substantial improvement in the financial forecast since Month 8, with the projected overspend decreasing from £4.5 million to nearly reaching a balanced position, attributing this to effective financial management and collaborative efforts across the authority.
The anticipated balanced position is recognized as a significant achievement, the result of ongoing emphasis on financial control and the collective efforts of the entire organization operating as ‘One Devon’, in addition to collaboration with our partners. These actions have aided in addressing immediate financial pressures, implementing planned savings, and delivering services within agreed budgets.
During the discussion, councillors were informed that the figures also included the £10 million savings required to establish a reserve for submission to the Government, seeking financial backing for the spending deficit on special needs education (SEND). Angie Sinclair assured that progress on the authority’s work with the Department for Education, referred to as the SEND Safety Valve, is progressing well, with an expected Ministerial decision on the horizon.
In her statement, Sinclair emphasized that the demonstration of financial stability, commitment to planned actions, and the implementation of a strong governance structure has positioned the authority favourably leading up to the awaited Ministerial decision.
Sharing his perspective, our Cabinet member for finance, Phil Twiss, emphasized the significance of the report, highlighting that the challenging decisions made by Devon County Council in recent years are setting the foundation for long-term sustainability. This, in turn, will enable the delivery of optimal services to the people of Devon within the limitations of finite financial resources, with a particular emphasis on the critical importance of addressing the SEND overspend.
As the financial year draws to a close, it is evident that the concerted efforts and strategic financial management at Devon County Council are laying the groundwork for a balanced budget. The commitment to financial stability and prudent governance will continue to play a pivotal role in ensuring the effective management of resources and provision of essential services for the community.
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