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Cash warning for council

 
Created on 07/01/2018 @ 09:26
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Powys County Council is failing to hit savings targets a report to cabinet will reveal on Tuesday.

A report from cabinet member for finance councillor Aled Davies, is set to go before the council's cabinet warning departments to reduce projected overspends.

The report shows that the projected overspend of £4.260 million in October has increased to £4.469 million.

Councillor Davies, who is also Deputy Leader of the council, says there has been limited improvements in recent months and it is of concern that savings delivery is becoming increasingly difficult at the council.

A deficit recovery plan has identified £2 million worth of proposals that have been planned to reduce the council's budget deficit.

In the report, Councillor Davies said: "All services must aim to deliver their targets in order to achieve a balanced budget by year end. If all the savings were delivered, based on the current service projections an overall budget out turn of £245k would be achieved.

"A number of savings continue to be reported as red and as the year progresses there is an increased risk that these will fail to be delivered."

The report also highlighted that the use of reserves to support the revenue budget during the coming year is £10.3 million.

The council has had significant problems since the publication of a damning report in children's services by an inspectorate, which said the council had put children at serious risk of harm.

The forecast overspend for the service has increased by £458,000 to that in October, due to changes made in the service which has cost £279,000.

Costs to deliver an improvement plan have resulted in a spend of £101,000, and legal costs have hit the council, costing £78,000.

In October the cabinet agreed that budget managers should look to minimise spending where possible, refrain from spending unless essential, and delay recruitment if appropriate.

The report recommends that the cabinet continue to monitor the council's financial performance to ensure spending remains within approved limits.

 

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