News

Fewer homes and deaths add up to difficult year

June 05, 2007

by David Lindsell

A DROP in the number of people being cremated and fewer shops paying rent in Farnborough town centre have contributed to a fall in income for Rushmoor Borough Council.

Fewer planning applications by property developers and a dip in car parking income have also led to the council making less money than expected over the last financial year. Reductions in expected income drawn up in the budget left the council spending £260,000 more than it expected to at the start of the financial year.

The council now has just £1,006,000 in reserve in the bank, only £6,000 away from the limit set in its financial strategy.

Head of resources Peter Gardner said: “It was a pretty tough year.

“The key issue for the council is maintaining a sound financial position.

“We measure that by trying to keep a revenue balance — the cash in the bank — of between £1million and £1.5m.

“This year was £1.006m, which was quite close — reflecting the tight financial position we are in.

“It is a message for us of the importance of finding savings and efficiencies in the year.”

The council saw a reduction in town centre rental income of £155,000 due to a low level of occupancy. There was also no profit share from developer KPI.

Housing developers may have been put off by the controversial veto of new homes in the Mail area by Natural England to protect rare birds.

The council also put the reduction in income from planning control costs down to a slowing of the national economy. It also made a lower than anticipated car parking income of £108,000.

A reduction in the number of people dying in the borough led the council to make £74,000 less than budgeted on cremation charges.

Rushmoor Borough Council has run the only crematorium in the area in Guildford Road, Aldershot, since 1974.

National figures show around 70% of all recorded deaths are now followed by cremation.

Bob Waldron, the manager of E Finch and Sons funeral directors in Aldershot High Street, confirmed that the reduction in cremations was down to a decrease in the death rate last year.

“We are down on the number of funerals,” he said. “Our shop in Farnham is well over budget but Aldershot is slightly down.”

However, the council was able to claw back money in various other years to minimise the losses.

“The positive thing is the additional income we got,” said Mr Gardner.

“There were some successes in additional interest from money we invested on the London money market, partly because our cash flow was better and partly because of income rates.”

During the year, the council made additional interest of £226,000, helped by rising interest rates.

It made £121,000 of savings in staff vacancies.

Success in appealing against the rates on car parks in the borough netted it £270,000 backdated to 1992 and an extra £107,000 for the last two years.

However, due to a counter-appeal by the government’s valuations officer some of the money may have to be paid back.

In the capital budget there is £677,000 unspent, due to the delay of projects being set aside to the next financial year.

According to a council report the financial position leaves it with “continuing vulnerability to minor changes in turnover”.