'Considerable financial risk' for Devon County Council in near future, says treasurer

Devon County Council will face 'considerable financial risk' in the near future, according to its treasurer.

The biggest risks highlighted, apart from the ongoing effects of the pandemic, were the government's spending review, social care, and Devon's special education budget.

The last financial year (2020/21) saw the council spend £35k less than its revenue budget of £541 million - which might seem to be a good thing on the surface, particularly as it's the 29th year in a row the council has ended 'in the black' (not making a loss).

But County Treasurer Mary Davis issued a warning: "The longer term financial impact of the pandemic, the spending review, one-year funding settlements from the government, together with ongoing pressures in social care and the funding shortfall in special educational needs and disabilities (SEND), mean the authority is facing considerable financial risk in both the short and medium term."

The overspending on social care was offset this year by the council not having to spend so much on activities constrained by the lockdowns, but the demand is reportedly 'growing'.

The council also got £99.4 million of additional government funding during the pandemic, of which an unspent £25.2 million will be carried forward to the next financial year.

In addition, there was £66.8 million less spent on capital projects than budgeted this year - Mrs Davis will recommend to the Cabinet next Wednesday that this balance is also carried forward.

Devon's Cabinet member for finance, Phil Twiss, said: "To balance our complex budget in the face of the pandemic and all the extra pressures that our services have faced is a remarkable job.

"It means we are well placed to help to lead the economic recovery that Devon so badly needs over the coming months and years as well as facing the financial challenges that Mary Davis outlines."