William Eichler 18 November 2016

Thanet defends financial record despite ‘signicant risks’ from low reserves

Thanet council has defended what it describes as its ‘record of sound financial management’, despite an internal budget report warning the council faces ‘signficant risks’ because of low reserves.

The Kent council has reported it only has £6.6m in its reserves, despite a 2015 review by the Chartered Institute of Public Finance & Accountancy (CIPFA) suggesting a local authority the size of Thanet would normally hold in excess of £20m.

A budget strategy report said the council had ‘suffered a number of unexpected, unbudgeted events’ in recent years, including a ‘sizeable overspend’ on Dreamland heritage park.

The report warned Thanet carried ‘significant risk by holding such low levels of reserves’ and added that ‘even the £20m average reserves of a typical district may be on the low side’ due to a number of inherent risks such as owning and running a port.

The council defended its financial position and said it had a ‘solid track record of sound financial management’ having received a clean audit for 2015-16 from its external Auditors.

A council spokesperson said: 'Over the last four years Thanet District Council has had to manage a reduction of nearly 40% in revenue support grant from Government.'

They added: 'We have stabilised the financial position and are working hard to ensure our reserves are replenished.'

SIGN UP
For your free daily news bulletin
Highways jobs

Digital Infrastructure & Inclusion Programme Manager

Liverpool City Region Combined Authority
£52,051 - £62,147
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Digital Infrastructure Project Manager

Liverpool City Region Combined Authority
£37,600 - £50,531
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Next Generation Wireless Project Manager

Liverpool City Region Combined Authority
£47,631 – £50,531
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Adult Social Worker - Long Term Intervention Team x2 - Carlisle

Cumbria County Council
£31,895 - £32,798
We recognise that our workforce are best placed to design and embed new ways of working to achieve a modern social care service. Cumbria
Recuriter: Cumbria County Council

Independent Living Assessor

The Royal Borough of Kensington & Chelsea Council
£26,544 - £30,618
We support people’s independence and wellbeing, and work hard to enable them to live in the community with dignity, choice and control. Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.