We are taking action to manage in-year budget pressures caused by rising inflation and escalating costs.

A report on the Q1 budget position has been published today ahead of next week’s Overview and Scrutiny meeting. It shows a revenue overspend of just over £3.5m forecast for the end of the financial year as a result of circumstances largely outside our control. Despite providing for inflationary and cost pressures in the 2022-23 budget, this has not been enough to cover the unexpected pressures being experienced along with the rest of the country.

Rising fuel and energy costs aren’t just affecting households, they have an impact on our fixed budget too. For example, even before the latest price rises were announced we were forecasting our energy costs would increase by extra £800,000. However, there are many more costs that are outstripping those that we had anticipated at the start of the year.

As a result, we are being proactive and taking immediate action for the remainder of the financial year to try and limit the impact and bring expenditure back in line with the budget.

We have identified some actions that reduce the overspend, but not by the full amount, therefore we will be considering every penny and pound before committing to it being spent, and any expenditure that can, will be delayed until the start of the next financial year.

Deputy Leader and Cabinet Member for Finance, Councillor Darren Cowell, said: “Financial challenges are being faced by every council and household across the country – and Torbay Council is no exception. We are doing all we can, as quickly as we can to ensure we maintain a tight grip on our finances to deal with the impact of rising inflation and energy costs.”

You can access the Q1 budget report on our website.