Devon Struggles With Dwindling Funds Amid Growing Budget Concerns

Devon County Council faces some money problems. Their savings are getting smaller and smaller. They aren’t at risk of failing right now, however, it could become a problem later if they spend money like they have been.

Councils must balance their budgets by law. Devon tried to live within its means, but they had to use their savings lately. Now, their savings rank last out of 21 counties, and some risk measures changed to “high risk.”

Devon has the second lowest cash reserves total. They had £222 million in 2021. This fell to £125 million last year. They will likely spend £20 million more; this money supports the safety valve scheme.

This scheme is a government grant that helps with special education budget issues. Devon’s special needs deficit is large and will reach £132 million soon. It could even rise to near £163 million.

The government gave Devon £95 million, spread over nine years through the valve scheme. Devon must cut its special needs deficit, and they also need to lower costs.

This special needs deficit is kept separate legally, but the law allowing this ends soon. A council member, Julian Brazil, talked about the deficit at a recent meeting about money. He said the deficit will rise by £14 million, but budget papers show a £44 million rise.

He feels the council should explain this change. He thinks overlooking scrutiny is not good. Angie Sinclair is the council’s finance director, and she said they are still studying numbers. They want to predict the year’s financial result.