Peterborough City Council 'not out of the woods' after overspend
A council that overspent by £5m last year said it would be "crucial" to avoid a repeat occurrence this time around.Peterborough City Council said it exceeded its £220m net revenue budget in the 2024 to 2025 financial year due to challenges such as high interest rates and delays in selling off assets.In a report being presented to councillors on 17 June, the authority said the coming financial year was going to be "difficult and challenging".It said: "Despite the improvements made, the council isn't out of the woods yet."
The authority is currently in the process of selling assets to pay off debts, having already sold a football stadium, shopping centre and farmland in recent years.It expected to bring in £23.7m from asset sales last year but only received £10.3m after a delay involving the sale of a "large asset". The report said the council had been working to reduce spending last year by reviewing how it used agency staff and only spending where essential.It highlighted "significant pressures" in some areas, including in children's social care, where a £3.2m overspend was put down to a significant rise in the number and cost of placements.It said there had been a rise in the number of homeless people needing temporary accommodation, costing £1.7m more than expected, with 117 people in B&Bs in December 2024.Leisure services contributed to a £1.7m overspend and high interest rates, coupled with delays in selling off assets, added £1.9m to borrowing costs.
'Financial shocks'
These areas were partially offset by other areas where the council underspent or made savings, but still left a £5m gap.The council warned that its reserves were lower than required as a result, meaning it would be less able to respond to "financial shocks or an emergency".Reserves have dropped from £70m at the end of 2023 to £20.6m at the end of 2025.The council said it had made improvements in a number of areas including in-sourcing services and reviewing or closing council-owned companies.Councillors have been asked to note the council's financial position at the meeting on 17 June.
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