North East Lincolnshire Council forecasts £4 million overspend in budget this year

North East Lincolnshire Council forecasts £4 million overspend in budget this year

North East Lincolnshire Council has forecasted a £4.3 million overspend against its 2021/2022 budget, a new report has revealed.

The reason for the overspend in budget is cited as being due to the “ongoing impact” of the Covid-19 pandemic.

Set to be discussed at a Communities Scrutiny Panel meeting on Thursday 11 November, the Finance Monitoring Report reads: “At the mid-point of the financial year, the Council is forecasting a £4.3M overspend against its 2021/22 budget. The forecast reflects the ongoing impact of Covid-19, and the subsequent risks and demands being experienced, particularly within children’s and family services.

“We are continuing to work with services to manage and mitigate demand and workforce pressures although the financial position is becoming increasingly acute.”

The report goes on to state that NELC anticipates to deliver £53 million of the approved capital programme.

It reads: “We have continued to deliver a range of financial support packages within the Borough during 2021/22. This funding has been predominantly directed towards addressing the socio-economic challenges that have been faced by individuals and businesses.

“Collection rates, in particular non-domestic rates, have been affected by Covid-19 and we are continuing to monitor the position. The impact on future years income remains a risk and will be impacted by the pace at which the local economy recovers.

“Looking ahead, the Council faces a range of challenges including the continued and long term impacts of Covid-19, NHS reform, changes to local government funding models, inflationary pressures and demographic impacts on social care demand.”

NELC said its “long term financial strategy” focuses on the “achievement of financial sustainability” through economic and housing growth.

The report continues: “The Council has taken a more commercial approach over the past two years and is working alongside Government and private investors to accelerate growth across the Borough.

“Major regeneration projects within the town centres and the Humber bank are factored into the capital investment programme.”

North East Lincolnshire Council has been contacted for comment regarding the £4.3 million overspend.