Northamptonshire County Council: third commissioners' report
Commissioners’ third report setting out the work they continue to carry out to ensure a balanced budget at the council and to support the expected restructure.
Applies to England
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The third commissioner’s report sets out the good progress made so far to stabilise the council’s finances.
In 2018 to 2019, they resolved a £30 million projected overspend, balancing the budget and enabling the section 114 notice to be lifted.
This was assisted by a £70 million capitalisation request granted by the Ministry of Housing, Communities and Local Government which is being used to cover the deficit of £34 million (which commissioners uncovered) from the previous financial year (2017 to 2018), to create some reserves, to deal with some legacy issues, and a small contingency.
A new Chief Executive (Theresa Grant), has put in place proper financial controls, supported the restructure, and set a balanced budget for 2019 to 2020.
Nevertheless, the commissioners note that the financial position in 2019 to 2020 continues to be challenging. In quarter one, they forecast a £5.6 million overspend. However, mitigations are being developed alongside work to ensure that services are sufficiently robust to support the restructure in 2021.
Ministerial response to the Northamptonshire commissioners’ third report to the Secretary of State
The response from the Minister for Local Government welcomes the commissioners’ third report and notes the progress that they have made in turning round the council.