'Good financial management' by Portsmouth council leaves £3m to spend on projects next year

Portsmouth City Council has now approved its updated budget report for 2020/21, which includes amendments to mitigate for an 'unprecedented' deficit caused by the outbreak.

As previously reported, the authority estimated a potential loss of £32m this year but has so far received Covid recovery-specific government funding amounting to £19.4m. This leaves a 'worst-case' black hole of around £12m.

During a virtual full council meeting today (Dec 8) it was agreed £1.9m will be taken from previously approved capital schemes – some of which have underspent - to plug some of this.

And a further £5m will come from the council’s contingency fund and another £5m from its medium-term resources strategy, which is used for spend to save initiatives and redundancy pay.

Speaking at the meeting council leader, Councillor Gerald Vernon-Jackson, said the council had actually demonstrated 'good financial management.'

He said: 'While other councils have had to make big cuts and some have gone bust this is a prudent plan.

'Colleagues will be pleased to know the underspend from 2019/20 of £3m can be put in the pot of funding capital projects in the next financial year.'

SEE ALSO: Council to take £1.9m from projects and eat into £10m of savings to cover Covid losses

However, some councillors raised concerns. Tory group deputy leader, Cllr Luke Stubbs, said: 'It (the report) doesn't tell the whole story when talking about taking money out of capital. The council always has projects that go over and under budget. You need them to cancel out the ones that go over budget.

'If you don't have that money as a shock-absorber that means next year the capital budget is going to be smaller.'

His peer, Cllr Matt Atkins, added: 'There are areas where money has been wasted, like the loss of seafront car parking.'

He also cited the installation and removal of the bike lane in Elm Grove, in Southsea, that was paid for from an emergency active travel fund from government.

It comes as residents have been encouraged to have their say on how the budget will be spend via portsmouth.gov.uk/yourcityyoursay or by calling 023 9261 6708.

A message from the Editor, Mark Waldron

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