Derby City Council's finances in 'better position than expected'
The council said they also reduced their reliance on reserves has also reduced, down to just under £500,000 from a quarter one forecast of £5.8m. The report added a large proportion of the final overspend was funded by contingencies held by the Labour-run council.Finance bosses added this majority of the overspend was funded from a contingency allocation of £2.9m, which was additional government funding received from the final financial settlement in January.
But the Conservative group of the council said authority was too reliant on one-off contingency funding and using reserves while the £29m in unfunded pressures "highlights poor forecasting" and a "failure to plan" for well-known cost drivers such as social care and homelessness.The Tory group leader, councillor Steve Hassell, added an "eye-watering £85m slippage" in capital spend "indicates key projects, including regeneration and infrastructure schemes, have either stalled or been reprofiled"."[This report] paints a picture of stability, but scratch beneath the surface and the reality is far more troubling," he said."Labour's outturn report reveals a council balancing precariously between crisis and complacency," he said."Behind the polished presentation lies a fragile financial position kept afloat by temporary solutions. "The Conservative group will continue to hold this administration to account and demand responsible, transparent and deliverable financial planning that genuinely serves the people of Derby."
Councillor Kathy Kozlowski, cabinet member for finance, said the city was reporting a "much better position" than other councils and the chancellor's recent three-year deal spending review and funding reforms were welcome.But Kozlowski added the council was "not out of the woods yet". "We've had to work hard as a council to get to this position, and I'm grateful to all our staff who have helped us find new ways of working," she said."I'm very pleased to see our accounts moving to a place of greater financial stability because it puts us on a firmer footing for delivering the services our citizens need."The continued financial sustainability of the council continues to be a priority for us, allowing us to invest more into essential services that support some of our most vulnerable residents whilst also creating resilience for the future."
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