DEVON County Council underspent by £35,000 in the last financial year.

It has now been in the black for its 25th consecutive year, the net revenue budget allocated for the financial year was £500.105 million.

In a report, county treasurer Mary Davis said: "The financial year has now ended and it is pleasing that the final position is a small underspending of £35,000."

Although it was good news for the area, Mrs Davis warned that children services and adult social care continue to be subject to significant financial pressure during this time of continuing austerity.

The report added that children's services must not overshoot its enhanced budget for the current financial year, as they did in the last.

She said: "A budget underspend has been achieved in spite of significant financial pressures within People services.

"Children’s social work and child protection faced very great pressure in the year and finished overspent by nearly £13.9 million.

"This was mainly the result of more children being placed in care than allowed for in the budget."

“The cost of social workers was also higher than budgeted. The numbers of both agency workers and social workers were reduced during the year and, by the last two months of the year, were within budgeted levels.

"In 2016/17, the budget for people services was increased by nearly £16.2 million in recognition of the increase in demand faced by the caring services.

"The council must ensure that it stays within the increased budget set for 2016/17 and that there is not a repeat of the children’s services overspending either in that service or any other service."

According to Mrs Davis, social care commissioning underspent by £3.2 million, and overall, the adult social care service underspent by £1.8 million.

Education was an area that overspent. Due to school transport costs of higher fees for contractors and more children with special needs, the department overspent by £787,000.

Among the projects completed in the financial year were the South Devon link road, two new rail stations and a number of school expansion schemes.

Cabinet will meet at 10:30am on June 8 to discuss the report.