CITY council leader Satvir Kaur has said the authority's finances look worse because its latest report is 'open and transparent'.

Labour leader Cllr Kaur spoke at a cabinet meeting today ahead of full council, which is set to discuss a £20m shortfall this year.

A report found spending was hitting nearly £2m a month and was 'out of control'. The budget black hole is set to worsen to £56m in a few years.

According to a meeting of the cabinet, the 2022/2023 outturn report, which sums up the previous year’s financial state, normally includes the use of reserves when looking at how much money is in the council’s pot.

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However, this year, the report has been ‘open and transparent,’ the meeting was told.

The council can take money out of its reserves to help balance its books.

In this outturn report, if money has come from the use of reserves, it is listed as just that – with claims not doing so ‘doesn’t give a true and accurate representation’.

The cabinet met to briefly discuss the report before full council.

At cabinet, Cllr Kaur said: “It’s a very factual and short report. 

“I think what has been very important is that we are being honest with where we are with that outturn report.

“In the past, when we have shown surpluses. That has been because there has been an exaggeration – an inflation of taking in-year reserves which doesn’t give a true and accurate reflection of the outturn report.

“We are trying to be open and transparent with this one.”

A report written by Steve Harrison, the head of financial planning and management, states that more than £11million was taken from the reserves.

It reads: “The overall outturn on the General Fund was a year-end deficit of £11.38m, requiring a transfer from reserves to give a final balanced position.

“Although previous years have shown surpluses, this has often relied in part on some use of reserves in-year, for example using the social care demand reserve to assist the reported position for the 2021/22 outturn.”