Devon County Council is calling on the Government to meet the almost £4 million financial impact of Local Government Reorganisation (LGR), as its latest budget figures show continuing pressure on council finances.
The Council’s Month 6 budget report identifies £1.4 million in direct costs from reorganisation and £2.3 million in savings that have not been delivered because staff and resources were diverted into the work.
The Government has announced £1.8 million for the whole Devon area, but the Council says there is still no assurance that its full costs will be reimbursed.
The latest figures show the Council is forecasting an £8.2 million overspend this year, an improvement of £608,000 since its previous forecast.
Adult social care remains the biggest pressure, with a forecast £8.8 million overspend, although this has improved by £1.2 million since the summer.
The Council expects to deliver £30.8 million of the £38.3 million savings planned for this year.
Councillor James Buczkowski, Cabinet Member for Finance and Public Value, said:
“The financial impact identified so far (from LGR) is almost £4 million. £1.4 million in direct costs and £2.3 million in savings not delivered because resources were diverted into reorganisation work.
“But the consequences extend well beyond the bill.
“Officers who should have been concentrating on improving services, delivering transformation and managing the pressures we have discussed were required to prepare for the Government’s chosen reorganisation. That decision was then paused and subsequently withdrawn.
“We should be unequivocal. Devon’s residents should not be left paying for the Government’s botched handling of LGR through further pressure on local services.
“The Government should stop this process permanently, reimburse the costs its handling has imposed, and give Devon’s councils the certainty they need to concentrate fully on serving our residents.”
The Council remains focused on tackling spending pressures, delivering savings and protecting the services residents rely on. It is calling on the Government to meet the costs of reorganisation and end the uncertainty that is diverting resources from those priorities and undermining long-term planning.