Cash overspend warning to council

Figures for July, up on June, are, councillors say, due to unachieved savings targets.

A cabinet meeting held on Tuesday was told by the portfolio holder for finance Councillor Aled Davies that efficiency savings were only being included in the figures once they have been achieved and so the figure is likely to improve as the year moves on.

However he warned that August’s figures were starting to come through and were showing a worsening position.

This was a worry, he said.

The council has an efficiency target of £11.78m this year which includes this year’s and the previous year’s targets.

Councillor Davies said an analysis had been complemented showing a range of financial outcomes ranged from the current underspent to the lowest achievable, £1.4m if all the savings are made.

He said to achieve a medium level an extra £796,000 of savings needed to be delivered.

The cabinet was told the greatest risk at the moment is within children’s services where no savings have been delivered and where there is a current overspend on looked after children.

The council’s reserves currently stand at £38.8m with £8.7m in general reserves.

Councillor Davies warned unless the agreed efficiency savings are delivered there will be a further draw on the general reserve currently projected to be £4.3m, which would reduce the general reserve to £3.7m.

Cabinet members noted the report.