PROGRESS is being made to get Cumberland Council into a stronger financial position, a councillor has said.

Councillor Barbara Cannon (St Michaels, Labour), the portfolio holder for financial planning and assets, gave an update to fellow members of the council's executive committee at Cumbria House in Carlisle on Tuesday (March 19).

They were discussing the first three quarters of the financial year (April to December 2023) and she told councillors that she was pleased to report that the challenging work around this year's revenue budget has led to further progress to manage the financial pressures that had "been inherited from the four former councils".

She said that, at the end of the first quarter, there had been a predicted overspend of more than £17million but this had been reduced to £8.5million by the end of the second quarter.

"A significant amount of work has been done since then and I am now able to report that the gap has narrowed further to £5.8million," she added.

"Much credit needs to be given to the work in treasury management which has reduced borrowing costs and improved income from investments and property.

"In addition, the council has continued to reduce costs across the directorates and that work will continue this quarter and into the next budget year as we deliver our transformation plans and find new and more effective ways to provide our services."

Cllr Cannon said that her report highlighted the financial challenges faced by the council but reassured members that progress was being made to get on top of the budget.

She said: "It should be noted that the Government has reduced the top-up grant from business rates and that, alongside revaluations of some business properties, has led to reduction in funding of £638,000."

Cllr Cannon said there was still "significant pressure" on parts of the budget due to rising demand and added: "We have, for example, previously reported on the increasing demand for children's services which is no different from any other council in the country."

She said they were on track to deliver capital expenditure of £154.1million in this year's budget and a further £176.9million would be carried forward into next year's budget.

Cllr Cannon said councils were getting reduced amounts in funding when compared with 2010 – for example Carlisle City Council had £18.1million of core spending power in 2010 but this had fallen to £13.6million and its grant had also fallen from £11.5million to £5.6million during the same period.

She said: "From the figures I have just quoted we have clearly never had it so good – the reverse in that local councils have been cut to the bone.

"It is also clear that if you take inflation into account, the pound in the pocket in 2010 was worth only 66p in 2023."

Members of the committee agreed the contents of the report.