Council’s budget more than £7 million over-spent
Lewis Smith Local Democracy Reporter
A council has reported an overspend on its annual budget for the 2023-24 financial year of more than £7 million.
Members of Bridgend Council were given what they said was a “sobering report” at their most recent full council meeting where they were told of the authority’s current position heading into the 2024-25 financial year.
It reported an overspend that was said to be largely due to “ongoing pressures within the social services and wellbeing directorate and in respect of home to school transport, homelessness and legal fees.”
This amount will now be drawn from £6.952 million of “other earmarked reserves” as well as the transfer of £102,000 from the Council Fund, though it was noted that it would not be sustainable for the organisation to use reserves to fund services long-term.
“Astronomical figures”
The report read: “The overall out-turn at 31 March, 2024, is a net over spend of £7.054 million comprising £13.839 million net over spend on directorates and a net under spend of £5.279 million on council-wide budgets.”
Opposition members asked if enough was being done by the authority when it came to budget forecasting given the “astronomical figures” as well as what was predicted to be another overspend in the first quarter of this year.
Officers responded by saying it was the first time the authority had overspent on its annual budget in what were said to be exceptional circumstances, with exponential demands for services that couldn’t be predicted.
Speaking at the meeting, the leader of Bridgend Council, Cllr John Spanswick, said the authority would now be on essential spend only with officers urged to be mindful of every penny they spent, adding that there was also work ongoing behind the scenes to control expenditure.
He said: “We are on essential spend only and we need to bring the budget in as close to the amount we have available.
“We can only live within our means, so there’s some difficult decisions coming and I hope there will be support across this chamber to take those difficult decisions as and when they arise in the months ahead.”
Members later noted the out-turn report for the annual budget for 2023-24 after a series of back and forth discussions that took place.
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