The financial position at Preston City Council is showing healthy signs.Advertisement
Councillors are to be told in the latest outturn report the city council is able to put additional funds into its reserves.
An underspend of £1.5million and a boom in money coming from planning applications and new homes being built in the city means once the council allows for ‘slippages’ it has £435,000 more than planned to put away for a rainy day.
Cabinet member for resources and finance councillor Martyn Rawlinson said: “The financial outturn further improves our financial position since the budget in February.
“The Council still has a deficit between income and expenditure but healthy reserves and balances are allowing us to pursue our manifesto commitments on the Community Bank, worker co-ops, new cinema development and more.
“This is reflected in the first Cabinet Agenda since the elections with a new play area in Fishwick, two homelessness projects and an anti-hate crime scheme.
“There is no room for complacency however, Brexit and the government’s Fair Funding Review for local authorities could still have a significant negative impact on the Council’s finances.
“We always have contingency plans for adverse budget activity but any reversal in our financial fortunes could seriously affect Preston’s progress.”
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The city council has cut jobs in recent years as well as implementing a restructure of its senior management team – saving around £100,000 through non-replacement of some senior roles.
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Councillors to hear details during the cabinet meeting on Wednesday (29 May).