South Tyneside Council came in £400,000 under budget for 2019/2020 - but financial pressures are expected to bite

South Tyneside Council’s spending came in around £400,000 under budget for the 2019/20 financial year.

Thursday, 16th July 2020, 2:27 pm
Councillor Ed Malcolm

Over the period, the council faced financial pressures relating to social care, area management, commissioning and the effects of the coronavirus pandemic.

Last year also saw the delivery of £11.9million of savings in addition to the millions of pounds of cuts made since 2010.

Read More

Read More
South Tyneside chiefs say 'substantial amount' of extra cash needed to plug spen...

Sign up to our daily newsletter

The i newsletter cut through the noise

“The council continues to face significant financial pressures due to reduced government funding, demands on services as well as the effects of Covid-19,” cabinet member for innovation and resources, Cllr Ed Malcolm, said.

“Despite this, we have been able to achieve a small underspend against budget and increase our reserves to reflect the risks faced by the council.

“Reserves have increased due to the receipt of various government funding streams in response to the Covid-19 pandemic to be used during 2020/21 as necessary.

“I must remind cabinet that a large proportion of our reserves are committed for costs which we will incur in future years leaving modest sums to cover unanticipated costs.”

Cllr Malcolm was speaking at a cabinet meeting, which was held remotely and broadcast live on YouTube.

According to the cabinet report, additional grant income from the Government, extra rental income and lower property running costs helped the council reduce cost pressures in 2019/20.

Provisional figures for the year list the underspend in the revenue budget as £386,000.

Year-end budget pressures include £2.048million in children and families social care, £1.720million in area management, £1.7million in adult social care and £1.253million in commissioning and quality assurance.

The capital investment programme also saw an overspend of around £771,000 with budgets re-profiled in the 2020/21 monitoring process.

Meanwhile, the housing revenue account had a £1.662million overspend against budget, creating a £46,000 deficit on the account.

The 2019/20 outturn position is subject to review and external audit before being signed off.

Cllr Ed Malcolm said: “As stated in the report this is not a normal year and therefore there is a greater likelihood of changes to these figures compared to previous years.”

The council chief also confirmed that there were no plans to reconfigure spending plans in an ’emergency budget’ going forward.

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper.

Thank you

How to subscribe to the print edition

It’s easy to subscribe to your local newspaper. We have arranged a special 20 per cent off subscription offer for people to take advantage of. Visit www.localsubsplus.co.uk, choose the newspaper title, the type of subscription and enter your details.