South Tyneside Council underspent on its revenue budget by nearly £2million last year, according to new figures.
In 2018/19,the authority spent £1.850 million less than its net revenue budget.
Despite an overspend of £2.738 million in Children, Adults and Health services over the period, the authority saw under spends in other areas.
This included £2.417 million in Business and Resources and £2.171 million in Economic Regeneration.
The provisional figures are part of the authority's 'Outturn Position Statement' and are subject to external audit.
However, council bosses have said major changes are unlikely.
A report, presented to cabinet on Wednesday (July 10), stated the underspend will be used to deal with potential funding cuts in future.
It reads:"The success of our financial planning and management during the year has resulted in a £1.8 million underspend despite significant cost pressures and a continuation of the reductions in Government funding and on-going cost pressures.
"This means that we are able to increase reserves to assist in dealing with the future anticipated reductions in government funding."
Lead member for Resources and Innovation on the council, Coun Ed Malcolm, told cabinet the move would strengthen the council going forward.
Speaking at South Shields Town Hall he said: "The council continues to face considerable financial pressures due to reductions in government funding and demand on services.
"Despite this, we have been able to use underspend against budget and increase our reserves.
"This will strengthen our ongoing sustainability in the face of significant future financial risk."
He added that reserves could be used in future to deal with "unanticipated costs".
According to the cabinet report, pressures still exist around Children and Families Social Care.
As of April, this includes £3.088 million linked to out of borough placements and independent foster placements.
Pressures of nearly £2million are linked to Area Management around vehicle and plant hire and waste collection/disposal.
While a further £655,000 pressure has been identified for public health.
The council also spent £1.888million more than its budgeted £99.386 million capital programme.
This was largely due to spending on refurbishment of community facilities.
However, Coun Ed Malcolm said the overspend will be "managed by planned re-profiling of the existing programme."
