Mixed picture as DCC overspend reversed but savings target off

Devon County Council is predicting it will miss its £50m savings target

It looks like Devon County Council won’t overspend this year, reversing a previous expectation.

However, it’s unlikely to save money either.

A fall in the cost of some of the services the council provides means day-to-day spending is now predicted to come in under-budget by just over £1 million.

Just two months ago, it thought would spend £4 million too much in this  financial year which ends shortly.

However, it has been helped by taking £2.5 million from its capital budget – which pays for larger projects – and gets cash from selling some of its buildings – and putting that into the revenue, or day-to-day spending, pot.

It also secured an £861,000 more than it was expecting from the government.

But it had hoped to save nearly £50 million or find alternative funds.

Now Devon’s cabinet has heard that it expects just over £41 million in savings and other income this financial year, more than £8 million short of target.

This excludes the council’s biggest financial burden, which is related to its special educational needs and disabilities (Send) spending.

This pot, which councils are allowed to keep separate from their main finances, is set to overspend by £52 million this year – more than £21 million above its targeted.

That will take the cumulative Send deficit over the year to more than £131 million.

Cllr Phil Twiss (Conservative, Feniton and Honiton) cabinet member for finance, said pressure remains on both adult and children’s services, but that “work continued to influence a better year-end.”

While the council approved a more flexible use of capital funding to help pay for day-to-day spending, some opposition councillors criticised its use.

Cllr Julian Brazil (Liberal Democrat, Kingsbridge) called the strategy “unsustainable.”

The council expects to spend more than £23 million of its reserves, taking its financial safety net down to just under £78 million.