Modest underspend but services still under pressure

By on 27/07/2012 in Deputy Leader, News

A detailed summary of Birmingham City Council's financial performance during 2011/12 will be reported to Cabinet on July 30.

The council will present an underspend at the year end of £11.332m on the general fund.

However, it has:

-    carried forward unspent ring-fenced policy contingency funds for use in 2012/13 of £2.153m

-    carried forward unspent grants and reserves totalling £13.687m to be spent mainly on ring fenced activity in social care and education.

-    added a further £0.704m to general reserves

This leaves the council's various service areas to carry forward their related overspends totalling £5.212m.

Cllr Ian Ward, Deputy Leader of Birmingham City Council, said: “Government funding reductions meant it was tough year for the financial management of the council.

“The final position shows how challenging this year will be as the council’s budget is reduced even further, compounded by the difficulties service areas found in delivering their budget targets in 2011/12 .

“However, we are not complacent and a huge effort will be made to control our finances while minimising the impact felt by citizens.”


Notes to editors

The council's budget for 2011/12 was approved at the City Council meeting on March 1, 2011. The budgeted revenue expenditure was £3.5265billion and, after taking account of income, the net budget was £1,023.4million. This included a savings programme totalling £212.8million.

All outturn figures are still subject to audit.

The council's formal Statement of Accounts will be reported separately later in the year, following the completion of work by the External Auditor.

For more media information please contact Kris Kowalewski on 0121 303 3621

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