£2.2 million budget surplus predicted for this year's Powys County Council budget

At a meeting of the Finance Panel on Thursday, September 11, members will receive a report which shows how the council’s revenue budget has progressed between April 1 and June 30.

This year the council’s budget is just over £367 million, and finance chiefs forecast the authority will spend £365.2 million by the end of next March.

The report shows that the surplus before money is moved around within the council is £1.846 million and after these transfers from reserve budgets the sum will be £2.194 million.

The report says that all £10.135 million in cuts and efficiencies must be made this year, and gives assurances this will be achieved.

Director of corporate services and s151 officer Jane Thomas said: “The outturn for 2024-25 (budget), and the late additional grant funding from Welsh Government was welcome and has allowed us the opportunity to set aside specific reserves and mitigate the ongoing budget pressures through this financial year, in readiness for the challenges to come.

“The position reported at quarter one is positive; however, the non-achievement of savings being projected is of concern, particularly at such an early part of the year.

“The council’s financial plans will be subject to ongoing review, funding assumptions will be revisited as more information becomes available, revised budget gaps calculated and clear plans of how we can bridge the gaps will be developed.”

Ms Thomas adds that a budget gap of £39 million still needs to be plugged over the next four years.

The surplus budget prediction is based on forecast overspending in some council departments being balanced against a contingency fund of £3 million held within the budget.

Known as the risk budget, this £3 million is taken from the total revenue budget and is set aside to deal with emerging financial problems through the year.

The report says that none of the £3 million has been allocated yet, but overspends of £1.6 million in Children’s Services, £1.1 million in Highways Transport and Recycling and £300,000 for school improvements are held against it.

The report said. “There is already some proposed use of the risk budget with virement requests to be approved by cabinet.”

These inter departmental money transfer include £640,000 to the Education department and £300,000 to HTR.

This is to cover an overspend in the Highways department.

Comments from the panel will be added to the report before it goes in front of the Liberal Democrat/Labour cabinet later this month where it is expected that the report will be noted and the virements approved.