Cabinet quizzed on revenue underspend of £14 million
Member for finance Nick Botterill has called it 'very good news', adding all areas of the budget are 'under control'
Wiltshire Council’s cabinet members have been quizzed on their reported £14m revenue underspend for the 2023/24 financial year.
The figure represents a £5.705m improvement on the council’s quarter three position and the additional money is set to go towards further highways improvements and other projects.
This is in stark contrast to many other councils struggling to stay afloat amid a crisis in local government funding.
Nevertheless, cabinet members faced analysis from the overview and scrutiny management committee at a meeting on Tuesday, July 23, during which they were asked: could it all go wrong?
When presenting the financial report to the committee, cabinet member for finance Nick Botterill described it as “very good news” and noted that all areas of the budget were “under control.”
Cllr Christopher Williams argued: “It can’t be that good surely, there has got to be something underlying somewhere that says hang on a tick, it could all go pear-shaped – and what have we got in place to mitigate those circumstances?”
He added that the budget report should come with a warning that says, “this could all go wrong.”
Cllr Botterill insisted that “whatever comes”, Wiltshire Council would be in a “better position to deal with it” than a local authority that has failed to manage its finances successfully.
Director of finance Lizzie Watkin said that the forecast £6.059m overspend in adult social care was “an area of concern” but considered that the trajectory of the dedicated schools grant’s forecast £3.645m overspend was the biggest risk in the budget.
She acknowledged: “We are a very complex organisation exposed to many different risks from many different areas.”
However, she noted that the report shows that the general fund reserve sits at £34m.
She concluded: “We are on top of our finances, we are managing well.
“We cannot be complacent in terms of that.”
According to the council, alongside the underspend total, a further £5m of community infrastructure levy contributions will also be added, meaning the total additional investment into highways will stand at £10.7m.
Over the course of 2023/24, a total of over £20m additional investment has been identified and allocated to highway improvements, including road surfacing, road safety and highways flooding alleviation works.
Cllr Botterrill said: “Our focus remains on running an efficient and effective council that delivers for residents and spends their money as wisely and prudently as possible.
“I’m pleased with our progress and we’re working hard to see that continue.
“We will continue to identify the areas of upward cost pressures as well as ensure that our highly effective preventative approach is maintained.”