City council overspent by £3.4m
THE city council overspent its budget by almost £3.4m in the past year.
The authority, which spends more than £900m a year, has dipped into reserves to cover the additional spending.
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The city council has dipped into reserves to cover the overspend
Councillors have blamed increasing costs and falling income for the overspend.
Aggressive cost-cutting plans, including a recruitment freeze lasting many months, have failed to bring spending back in line with the council's budget.
However, it could have been worse – before Christmas, the council was warning its overspend could be as high as £7m.
The overspend of £3.4m has been reported in the council's Statement of Accounts. It highlights the highest spending departments as Children's Services, Culture, Transport, and Neighbourhood Regeneration.
Some of the largest overspends included:
£2m on private agencies to place children with foster families or in care.
£0.5m on transport because income from parking fell by £1m below expected levels.
£0.5m in Neighbourhood Regeneration because income from planning applications fell.
£1m on cultural projects, with £0.5m being put in reserves to cover the cost of the overspend on Nottingham Contemporary art gallery, and £0.3m for the Royal Centre.
Coun Graham Chapman, the deputy leader of the city council, said that the largest impact related to Children's Services.
He said: "You cannot know in any one year how many children will be taken into care. All you need is one large family that needs to go into care and it can blow your budget."
Coun Chapman said that the aftermath of the Baby P case, where a young child died while in the care of Haringey social services, had made people more cautious and maybe increased the number of referrals.
The deputy leader said the budget for this financial year, which began on April 1, directs more money to Children's Services and should prevent a similar overspend next year.
But the public sector union, Unison, has accused the city council of mismanaging its budget.
Jean Thorpe, spokesman for the Nottingham City Council branch of Unison, said: "We think they mismanaged the budget in terms of using consultants and agency staff.
"They have known for a long time they are paying a lot for agency staff in social services. If they had grasped the nettle earlier they may not have found themselves in this situation."
Ms Thorpe said that overall the council spends approximately £15m a year on consultants.
Coun Gary Long, leader of the Liberal Democrats, said: "Given the reports we were getting throughout the year it is no surprise there is an overspend. But some of the pressures have been building up for all of last year and some for three or four years.
"The question is what have they learned from last year's difficulties in what they have budgeted for this year and how will they deal with new issues that come up?"
charles.walker@nottinghameveningpost.co.uk
9 Comments
by Paul, Nottingham
Wednesday, July 01 2009, 10:13PM
“They will be looking at the final salaried pensions next!”
by Mr. Sensible, The Real World
Wednesday, July 01 2009, 6:48PM
“Couldn't have put it better MadBadger, we all need a bit of a time out from the working day. The Wheel of Nottingham is a case in point also; I know it has its skeptics, but I think it is rather popular and successful. Which is why I was pleased to hear that the Council will be giving it us for at least next year and after that we'll see.
Shame it couldn't be around now in this weather; I am sure that the views and the ride would be just splended!”
by MadBadger, The Sett
Wednesday, July 01 2009, 6:28PM
“Meeki, do you have any more detail on this?...
"Does the £3.4 million include in excess of £1 million Jon Collins Labour Council gave to the Jack Barker Golf Company?"
I don't like golf. Can you give us more detail?
Ann, Bilborough.
Is there a lot of student accommodation in Bilborough?
As for knocking down the concert hall, some people like a bit of culture.
It's worth paying for.”
by Ann, Bilborough
Wednesday, July 01 2009, 12:33PM
“Why was something so ugly as the Contemporary Art Gallery allowed to be built in the first place when we have places like the Castle and Wollaton Hall that could exhibit this so called art . And the Royal Centre and Theatre Royal have never made a profit so i say close it down knock it down and build there what the council is allowing to be built everywhere else in Nottingham STUDENT ACCOMMODATION.”
by margaret, nottm.
Wednesday, July 01 2009, 12:29PM
“so, childrens services. overspend is bad management. Trouble is they all stick together. Pupil referral unit, look at their costs, over 3/4 million pounds.
i won't bore you with details cos no one bothers. a friend of mine has been off work, on full pay, not sick, since march 2008. they employed an agency worker to cover. so, that is a loss. lucky bloke.”
by Have A Go Hero, Nottingham
Wednesday, July 01 2009, 12:28PM
“The comments says it all so Im not going to repeat the true feelings of the people who posted them.
But I thank all of you for your comments”
by Meeki, Nottingham
Wednesday, July 01 2009, 11:36AM
“Evening Post, before you remove my factual comments, I do have documents obtained via FOIA 2000. Do you wish to see these documents?
Does the £3.4 million include in excess of £1 million Jon Collins Labour Council gave to the Jack Barker Golf Company?
Anyone visiting Bulwell Hall Park will see a modernised pavilion.
Its alleged, the public's purse is heavily subsidising those using the golf course.
Its time the Evening Post acted like the Telegraph newspaper .”
by Notts Snob, Notts
Wednesday, July 01 2009, 10:59AM
“Chapman says that "All you need is one large family that needs to go into care and it can blow your budget" That may be correct and one has to ask how many immigrant familys are Nottingham City Council taxpayers paying for? Thanks to a Labour govenment opening the doors to the world and his wife there is going to be a lot less money to be spent on the folk who have lived in the UK all their lifes. Stop all immigration NOW!”
by mg, st ann's
Wednesday, July 01 2009, 9:28AM
“so £15 million spent on cosnsultants? why not consult the people who have to pay for everything, US! it would cost pennies, a bit of paper or simply ask what people think of the services when they are used by giving a simple questionaire to fill in, you could save US a fortune!”