Better-than-expected returns from East Devon District Council’s investments means it is predicting a budget surplus.
The local authority thinks it will earn just over £2.3 million in investment income in this financial year, compared to the £1.5 million anticipated when it set its budget.
The boost outweighs lower-than-expected income from planning fees so far this year, although the council believes there is “significant potential” for that to improve thanks partly to two major residential planning applications at Cranbrook.
The council had also saved money from its management of public toilets, but its £300,000 target hasn’t yet been met.
However, the investment income again counteracts this, meaning the authority is expecting a surplus of around £500,000 in its general fund.
In its housing budget, which is ring-fenced money, a small surplus of £77,000 is predicted, with highr returns from investment income helping again.
Furthermore, while there is a predicted underspend in its housing capital account – a specific pot of money for the likes of housing repairs – this will either be spent this year or rolled over to next.
Millions of pounds in extra funding to rectify years of under-investment in social housing in the district was approved in July, with the council’s leader then claiming previous efforts to tackle the issue hadn’t worked.
The full council agreed nearly £12 million of additional funding in the summer, mainly to help it cover the cost of increased requirements on social landlords to ensure properties meet high safety and quality standards.
Like many councils, this means East Devon’s housing-related costs are rising more quickly than its income, exacerbated by what several councillors and officers referred to as sustained under-investment.
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