Prudent financial management brings council under spend

Despite added pressure on social service budgets, unexpected flood expenses and continued government under funding in education, Herefordshire Council has ended its financial year under budget for the fifth year running.

The council under spent on its day-to-day (revenue) budget by £591,000 in the 2007/08 year, helped partly by an increased government grant that rewarded good management of its benefit payment systems. A general reserve of £6.7 million is available for any future unforeseen requirements.

"This is another year of prudent financial management", said Councillor Harry Bramer, cabinet member for resources. "When many other local authorities are overspending and cutting back on services, Herefordshire is able to meet its fiscal challenges and continue to provide the care and support to the most vulnerable in our communities".

Councillor Bramer congratulated the council's benefit team that has secured extra government subsidy through its performance on its management of housing benefit.

Providing public services in a sparsely populated rural environment is costly, particularly when transport is taken into account. Herefordshire has the added pressure on care services for older people as the percentage of retired people living in the county continues to rise. The county is also the third-worst funded authority in England when it comes to education. On top of that the worst floods for over 60 years hit Herefordshire in June last year, and despite grants from government, the county was still left with some costs that the government's scheme would not meet.

Capital funding went to flood alleviation schemes in Hereford and Ross, the construction of the Rotherwas access road, the new crematorium for Hereford,

"Herefordshire continues to manage public money well", added Councillor Bramer, "helping us to provide good, value-for-money services, maintain strong reserves, a good balance sheet and a robust financial strategy that is designed to make the best use of available resources".