Repair or replacement

Question

Is it true that a parish council (without a general competence) can only spend against categories of expenditure that were budgeted for?.  For example, suppose uninsured damage to a bus shelter occurs but the budget contains no line item for repairs to the bus shelter.  Can the shelter be repaired or does it have to be included in the following year's budget.

Are there any restrictions using the general reserve for this purpose?  And what would happen if the shelter cannot be repaired and has to be replaced when there is no earmarked reserve for that or any capital budget?

Answer 1

If you're using the model financial regulations, 4.2 states:

4.2. No expenditure may be authorised that will exceed the amount provided in the revenue budget for that class of expenditure other than by resolution of the council, or duly delegated committee. During the budget year and with the approval of council having considered fully the implications for public services, unspent and available amounts may be moved to other budget headings or to an earmarked reserve as appropriate (‘virement’).

It's also worth checking what limit your council has chosen in 4.5 for emergencies.

Comments

There’s your key phrase:

other than by resolution of the council,

Or, to put it another way - any expenditure is appropriate so long as it is (a) lawful in its own right and (b) supported by a majority vote.
Anyone tells you anything else is misinformed

Answer 2

I was told our General Reserve couldn’t be spent in any circumstances I pointed out that this would seem similar to having a fire extinguisher marked “ in case of fire do not use “ I also suggested that if that was the case maybe we should set up a separate reserve we could spend
Budgets aren’t set in stone and reserves are there to cover unexpected expenditure

Answer 3

No! It is not true.
That is a pea brained interpretation by a moron without the ability to rationalise.
EMRs are anticipated and planned reserves.  That is not to say those allocations are sacrosanct if an unanticipated liability occurs.
Unanticipated liabilities are either covered from revenue expenditure or from funds that are sitting idle in EMR waiting for something to occur. If the need arise, more urgently, elsewhere, move the money to where it is needed.