Torridge District Council to get budget surplus

It will protect the council from future government cuts

Most of an £850,000 predicted budget surplus will go towards protecting Torridge District Council (TDC) from future government cuts.

Following a unanimous vote by the council’s strategy and resources committee, £600,000 of the surplus for the 2022/2023 financial year will go to the ‘Transition in Government Funding reserve.’

The kitty exists to protect Torridge against the uncertainty of future government funding and could help the council balance its books.  

Councillor Peter Christie (Greens, Bideford North) said the reserve meant the council would be “subsidising the government yet again,” by using money it itself raises to offset government cuts. 

Councillor Robert Hicks (Independent, Monkleigh & Putford) said: “In fairness to the government, they’ve spent a bob or two on the covid crisis. It’s got to come back from somewhere.”

Just over £150,000 of the savings will go towards a ‘Trainee and Graduate Planning’ reserve. The district council has an ageing workforce and it plans to train new employees so they’re ready to take over when senior staff retire. 

A further £100,000 will go on the council’s apprentice reserve so TDC can “grow its own” staff. 

A large part of the reason why the council has managed to save the money is that income from planning applications is at its highest ever level. TDC expects to make £520,000 above predicted targets.

In addition, the governments gave the council £228,000 for administering covid-related business support grants, but it has been able to save almost all this money by using current staff to do the job.

The council also made a profit of £154,000 from car charges for people driving to the Burrows nature reserve. The boost is thought to be in large part because of a high number of staycation tourists coming to North Devon because of the pandemic. 

TDC had set aside £150,000 of its budget to support its leisure services but it is expected that money from the government’s National Leisure Recovery Fund will cover the council’s costs.

Officers warn there will be additional budget pressures in the near future. One reason is the rising costs of building materials which means the council’s construction projects will cost more.

In addition, the council’s wage bill is set to rise in April when National Insurance contributions for employers and staff rise by 1.25 per cent. 

The council’s chief finance officer warned: “It looks like a perfect storm is coming our way.”