East Devon Council uses reserves to manage budget gaps

Summarised from Exmouth Journal's report · Updated 16 Oct, 07:08 · Archive

East Devon District Council approved a financial strategy using reserves to cover projected budget gaps of £3.861 million in 2027/28 and £4.722 million in 2028/29.

East Devon District Council approved its financial strategy for 2027–2029 on 14 October, identifying annual budget gaps of £3.861 million in 2027/28 and £4.722 million in 2028/29. The council plans to use earmarked reserves to support the 2027/28 budget, giving councillors time to develop longer-term savings and income measures for the following year.

The council attributes the worsening financial position to changes in government funding, including the rebasing of retained business rate growth and the ending of New Homes Bonus income. It also assumes that approximately £1 million in one-off government support received in 2026/27 will not be repeated. Uncertainty over local government reorganisation has complicated financial planning; the strategy was initially developed around new authorities taking over in April 2028, but a government pause and review means East Devon may need to manage its own budget for longer.

Potential measures identified include additional planning fee income, lower leisure service costs and savings from reviewing the capital programme, which could reduce the 2027/28 gap by around £1.2 million, though these figures depend on future developments and decisions.

Read the report

• Council turns to reserves as East Devon faces mounting budget pressuresMillions of pounds in projected budget gaps have prompted a council to back a strategy using reserves to protect services while longer-term savings are developed.Exmouth Journal · 16 Oct, 06:03

In this story: East Devon District Council · East Devon

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