Creeting St Peter: another year of financial prudence

In my capacity as finance portfolio holder for my beloved Parish Council, over the years I’ve been preparing what I tend to think of as cautious budgets, designed to meet our ongoing spending needs and avoid drastic year on year increases in the precept. That hasn’t always been easy.

When our Clerk resigned a few years back, it proved necessary to employ both a Clerk and a Responsible Finance Officer, increasing our required spend quite significantly. Luckily, I was able to manage the situation thanks to a lengthy period without any professional staff at all - I was, for a while, Chair, Clerk and Responsible Finance Officer and, as a sitting councillor can’t take a salary, the resulting savings came in handy later.

But I had it all covered and then, suddenly, our Responsible Finance Officer retired, meaning that we were, suddenly, underspending on our salaries budget line once again.

As a result, our reserves increased a bit and I was able to freeze the precept. This year, I’ve proposed another standstill budget. Curiously, or at least, it was curious to me until I gained a better understanding of parish council finances, that doesn’t necessarily mean that the band D charge is unchanged. Each year, Mid Suffolk District Council tell us how many qualifying households there are in the parish. If that number increases, the band D charge is reduced slightly, and the reverse is true if the number decreases.

We have increased the hours of our Clerk, who has taken on the role of Responsible Finance Officer, but otherwise our spending remains modest. We do need to pay for grass cutting, dig bin emptying and street lighting - we own our ten street lights but have a maintenance contract with Suffolk County Council - and we have subscriptions to pay to the Suffolk Association of Local Councils and the National Association of Local Councils amongst other things. But most of these are predictable and subject to modest annual increases at or around the rate of inflation, so making budgeting pretty straightforward.

And, as it may be the last budget I draft, I’m pleased that I’ll be leaving the Council with extremely healthy finances. Indeed, it might be said that our most pressing concern is to reduce our reserves somewhat, given that we currently hold reserves representing about 250% of our annual budget. Some of this is earmarked to replace aging play equipment, and some will go towards replacing the street lights in 2046 or thereabouts, but there is some money that really could be spent on village improvements, if it wasn’t for the fact that most of our meagre needs are generously met from the locality funds of our County and District Councillors.

Something for me to reflect upon in the months ahead, perhaps?…