Falkirk Council: Underspend but still financial challenges

Members of Falkirk Council’s audit committee heard the council’s agreed budget was £421 million while it’s overall expenditure was £416.3 – a difference of £4.7 million, which meant that reserves it had planned to use were not needed.

Most departments have been reducing costs substantially through a recruitment freeze, which helped off-set an overspend of £2.5 million in children’s services, mainly for residential and continuing care.

There was also a one-off transfer from Falkirk Community Trust of £3.1 million, which was higher than expected.

The draft accounts for the year 2022/23 were completed for the deadline of June 30 this year and presented to Falkirk Council’s audit committee.

The accounts were available to the public for three weeks in June and July and no objections were lodged.

They have now been sent to the council’s new auditors, Audit Scotland, who has said that they are likely to return to the council for approval in November.

Chief finance officer Amanda Templeman said that the document, of around 100 pages, should not contain any surprises for councillors as much of the information has already been presented.

Despite the savings made, councillors were again warned that many of the savings were one-offs that will not recur in future and won’t help in the years ahead.

Most of the council’s income was in the form of Scottish Government grants totalling £340.5 million, with £72.9 million from council tax.

Chief executive Kenneth Lawrie said: “We are operating in a very dynamic environment and we need to keep on top of the risks and challenges we face as a council.

“As officers, we’ve been very clear with elected members about the nature of the challenges we face, not least with financial sustainability.”