A POTENTIAL budget shortfall at Mid Devon District Council has almost halved after ways to save money and earn extra income were identified.

Areas where the local authority could make savings include falling energy bills, delaying recruitment when vacancies arise, and reducing spending on bed and breakfast provision after it bought 11 houses for temporary accommodation.

The council also hopes to earn extra income from possible council tax and business rate increases, as well as make money from garden waste, trade waste and car parking.

After assessing its options, the council believes it has a shortfall in next year’s budget of around £661,000, down from a worst-case scenario of £1.2 million just a month ago.

Councils are legally required to set balanced budgets, but if expenditure exceeds income, then they have to fill any gaps using reserves.

In total, Mid Devon identified an extra £925,000 it might need to spend next 2025/26, but also found a possible £1.8 million in savings.

However, some of these “red” items could be difficult to achieve or have a large impact on the council or a service it provides.

Mid Devon’s cabinet voted to agree less challenging “green” and “amber” additional expenditures and savings options.

In terms of the “red” ones, Cllr James Buczkowski (Liberal Democrat, Cullompton St Andrews), the cabinet member who oversees finance, recommended £100,000 of extra spending on both climate change spending and planning enforcement.

On savings or potential extra income, he proposed seven items categorised as “red” be agreed, including leasing more space commercially at its Phoenix House headquarters, refreshing out-of-date leases, and targeting additional income from its planning department via pre-application advice and support for developers.

Cllr Buczkowski added that £122,000 of possible savings by getting parish and town councils to help pay for building maintenance and for contributions towards staffing costs had a “low likelihood of deliverability” given towns and parishes didn’t want to pay.

A further 10 areas where money could be saved have been identified and officers will explore them.

The council is likely to decide its budget for the 2025/26 financial year in February.

Bradley Gerrard