TAMESIDE Council is in a ‘more stable position,’ according to the man responsible for its finances.
That is despite having to take out a third of a pot of reserve money to plug a shortfall of more than £9 million.
The state of the borough’s bank balance has come under scrutiny, with Independent Cllr Kaleel Khan and Conservative Cllr Liam Billington highlighting the issue.
And even though Labour cabinet member for finance and resources Cllr Hugh Roderick admitted more than £9 million will be drawn from funds to balance the books for this financial year, after failing to deliver savings worth about £19 million, things are looking up.
He explained at the meeting of Tameside Council’s executive cabinet on Wednesday, January 28: “We’re looking at a pressure on our budget of about £17 million, driven predominantly by pressures within children’s and adults’ social services.
“We’ll be using a contingency fund that was set aside for covering inflation across the year, which has £6 million within it and can be released.
“All of that means we’re forecasting an overspend at the end of March of £9.2 million, which will be funded from our general fund reserves.
“Our reserves fund is set to fall from £27.5 million to £18.3 million.”
But he added: “Obviously, we do not want an overspend, but we are heading in the right direction.
“We have stabilised our position. Despite increased pressures on our services, in spite of the failure to deliver savings that have been built into our budget and have been for several years, we’ve reached a stable position where we’re using reserves within a sustainable level.
“Not only that, thanks to a very fortunate settlement that we’ve had this year, next year we are looking to move to a position where we can not only not call on reserves but start to rebuild that position.
“We are in a much more stable position than we were 18 months ago.”
In term of capital monitoring – which details the council’s ability to deliver projects – Cllr Roderick insisted that position is now much more realistic.
He added: “We have a revised budget of £35.4 million, with a projected outturn of £33.9 million.
“This is part of a three-year programme of £101.5 million, which is largely being funded by grants and contributions, with some prudential borrowing of £6.5 million.
“Over previous quarterly positions, we have had to re-profile quite a bit of our capital budget. This has very much been reduced.
“We’re now in a position where we have a realistic view of the capital budget that we’re developing and delivering.
“And we’re making sure that we’re getting stuff that’s ready to go. So things like the investment in Ashton Market, investment in Stalybridge and Denton and projects that will improve life for our residents.”
Cllr Roderick was backed by fellow members of the executive cabinet, with Cllr Tafheen Sharif saying: “I’m just pleased this year that we’ve moved to incorporate the views of residents, in particular our policy together group, where the budget has been presented and views have been expressed.
“It’s really refreshing to see that.”
Cllr John Taylor added: “My colleagues and the est of the council understand that due to the volume of work that’s coming in and the complex needs, it costs us a lot more money to look after those people.
“We’re doing the right thing in funding that and looking after those very vulnerable people.
“We also gave a commitment to pay people in contract with us the living wage. That means the workforce is stabilising.”
Cllr Teresa Smith commented: “Children’s services has made significant savings. The picture is changing social services, particularly in children’s.”
Deputy leader Cllr Andrew McLaren praised the moves, saying: “This is a grown-up cabinet, and it’s delivering secure and stable governance of Tameside in very, very challenging times.
“It’s commendable and I know how much hard work’s gone into it.”