‘Desperate’ Northumberland communities need council reserves to be invested | Politics | News
A member of a Northumberland reform council demanded millions of pounds of plows from the reserves of the local authority, to communities he claimed to need ‘desperate’ financing.
Coun Barry Elliott, representing Newsham Ward, challenged Council financial officers during a heated audit committee meeting.
The draft of the authority dated 2024/25 reveals that in March, an amazing 294.06 million £ stocked in the reserves that were available at the closing of the previous financial year.
For local authorities, available reserves function as a “savings account” that covers both daily operations and future potential requirements, which can be used by councils for effective financial management.
This is a sharp contrast with unusable reserves for daily expenditures. Chronicle Live.
By the end of the year, the Council collected 728.62 million £ unusable reserves.
Coun Elliott also alarm on the 106th part of the Council with a total of £ 24.83 million.
These funds come from developers in the planning process, such as financing additional school places when new housing developments are built.
During the meeting, Coun Elliott explained: “Why don’t you use usable reserves? We have a reserve fund to protect the council from a rainy day, but why do we hold this money when communities are so desperate for money?
“I felt and other people in Northumberland have a large amount of 106 money for years. Is it for the community to be kept in the balance sheet?
“Is it better for the financial officer to support accounts and not use them in communities?”
In response to Coun Elliott, the finance chief Jan Willis said: “Usable reserves are kept for specific purposes – money can be given for certain purposes. The planned use of these reserves has set the budget for the next three years.
“With these reserves, with the medium -term financial plan (MTFP) is one of the financing sources.
“In almost all cases, they have plans to use this money – not just sitting there.”
Regarding the financing of Chapter 106, Coun Willis added: “Unused Part 106 We earn interest until the money is withdrawn because the money is in balance and an agreed plan hit a milestone.
He continued: “There are trigger points due to payments. Until it reaches this point, we keep this money in the backup.
