Covid-19 is still “casting a shadow” costing millions of pounds to the public purse, but leaders have hailed the resilience of Durham County Council’s finances.
Paul Darby, corporate director of resources, told a Durham County Council cabinet meeting of “significant continuing uncertainty and volatility” as he presented a report on forecasts for the current financial year.
He said: “It’s still too early to say to what extent the pandemic will have an ongoing impact on the council’s budgets.
"That will need to be reflected in our medium term financial planning.”
The net Covid-related cost and loss of income is forecast to be about £14.5m this year, but this was less than the £15.6m of Covid government funding, and £1.6m in fees and charges.
Mr Darby said the council would continue responding to the pandemic and closely monitoring budgets.
He presented a report on the treasury’s activity, borrowing and investments in the last financial year.
He said the council had a net debt of £91m – £36m less than the previous year’s figure – with total borrowing of £363m in loans, and investments totalling £272m.
He told the meeting: “In summary I would say that there is a very strong position for the council.
“Members can take comfort from the fact that the council continues to fully comply with its treasury management strategy and policies.”
A budget review was being made of adult and health services, forecast a £3.9m underspend, and children and young people’s services, forecast a £4.8m overspend.
Cllr Richard Bell, deputy council leader and cabinet member for finance, said: “It’s pleasing to know that the council is in a strong financial position.
“The Covid-19 pandemic continues to cast a shadow over our financial performance.
“We don’t yet know how long it will take for activity to return to pre-pandemic levels, if indeed they will in all instances.
“However it’s pleasing to note that net Covid pressures and loss of income are currently forecast to be more than offset by the Covid-19 grant funding that is being made available by government.
“Overall we estimate a £5.3m underspend over 2021-22… a good place to be in.
“ This council has strong financial resilience and continues to exercise prudent financial management.”
Council leader Cllr Amanda Hopgood said: “Managing our finances is a key issue for us and we will continue to manage the council’s finances tightly.
“In a council of the scale and complexity of ours it is challenging at the best of times, but this task is made all the more difficult with the financial uncertainties we have continued to face in dealing with the pandemic.
“I am pleased that we have overall been able to keep our spending within budget, but note the financial pressures in children’s services.”
