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How much do we hold in reserves? #budget2014

The Department for Communities and Local Government has been telling the BBC we have reserves of £18.6m.

This was true on 31 March 2013 but it isn’t the whole story, the breakdown of this amount was:

  • £5.5m schools reserves (which can only be used by the schools themselves and cannot be used for any other council service)
  • £8.5m earmarked reserves (that is money earmarked for specific purposes like PFI payments or government grants we had not yet spent)
  • £4.5m prudential reserves (minimum reserves in case of emergencies)
  • General reserves £0.1m

On 31 March 2014 we expect our reserves to be £15.9m, which will break down as:

  • £5.3m schools reserves (which can only be used by the schools themselves and cannot be used for any other council service)
  • £7.2m earmarked reserves (that is money earmarked for specific purposes like PFI payments or government grants we had not yet spent)
  • £4.5m prudential reserves (minimum reserves in case of emergencies)
  • £2.2m general reserves which we are holding against potential legal claims

Less our current projected overspend of £3.3m in this year, which will eat into the prudential reserves unless we can reduce it.

The portion of our budget over which we have discretion is around £150million this year. There is more information about this in our budget consultation.

Tags: Your council