Government urged to cover Devon’s £4m reorganisation bill as budget pressures continue

Devon County Council is calling on the Government to meet the almost £4 million financial impact of Local Government Reorganisation (LGR), as its latest budget figures show continuing pressure on council finances.

The Council’s Month 6 budget report identifies £1.4 million in direct costs from reorganisation and £2.3 million in savings that have not been delivered because staff and resources were diverted into the work.

The Government has announced £1.8 million for the whole Devon area, but the Council says there is still no assurance that its full costs will be reimbursed.

The latest figures show the Council is forecasting an £8.2 million overspend this year, an improvement of £608,000 since its previous forecast.

Adult social care remains the biggest pressure, with a forecast £8.8 million overspend, although this has improved by £1.2 million since the summer.

The Council expects to deliver £30.8 million of the £38.3 million savings planned for this year.

The Council remains focused on tackling spending pressures, delivering savings and protecting the services residents rely on. It is calling on the Government to meet the costs of reorganisation and end the uncertainty that is diverting resources from those priorities and undermining long-term planning.

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