CUMBERLAND Council has continued its progress to manage the financial pressures it inherited on 1 April 2023, a report considered by leading councillors this week reveals.
Members of the Executive committee were meeting in Carlisle to consider the council’s Q3 finance report for this current financial year.
This predicts a continued narrowing of any overspend this financial year to £5.8m. This is £2.7m lower than in the previous three months and considerably lower than in the first quarter when the gap was forecast to be more than £17m.
The improved financial position is largely due to reduced borrowing costs, income from investments as well as the work being carried out across the council to reduce costs and make services more effective.
There remains a number of pressures on the council’s budget, including a significant overspend forecast in children’s services due to a high demand for services.
The government has also reduced the top-up grant it gives the council from business rates by £700k which, alongside the outcome of revaluations of some properties, grant recalculations and other funding changes for 2023/24, has resulted in a net reduction in funding of £638k.
Cllr Barbara Cannon, Executive member for Financial Planning and Assets, said: “I very much welcome the news today that we are continuing to narrow the gap in this year’s budget.
"In April we inherited much of the spending plans and budgets from the previous councils and so there has been a lot of work to consolidate and fully understand them, but we have also taken tough decisions to get our finances more under control and that is starting to pay off. This work has continued in the final quarter and I’d like to thank all the officers for their hard work.
“Our financial situation remains challenging and there remains significant pressures in some areas such as children’s services. These are statutory services and provide essential support for some of our most vulnerable residents.
“By delivering on our transformation plan and looking at new and more effective ways of providing our services, I’m confident we will get the council on a more sustainable footing and make every penny work for the people of Cumberland.
“Our prudent approach to financial planning is working and so it is crucial that we stick to our plans.”
The council is also forecast to spend some £154.1m in capital investment this year.