A GWENT council has seen its budget deficit increase by £964,000 putting it on course for a £4.3 million overspend.
However it is hoped “budget recovery measures” which are still being drawn up could stem spending at Monmouthshire County Council by £1 million, which would reduce the gap between what the council is spending and what it budgeted for at the start of the year, to £3.3m by the end of the financial year in March.
Councillor Ben Callard, the Labour councillor responsible for finance, told his cabinet colleagues: “It will come as no surprise the greatest pressure comes from adults and children’s social care.”
The combined overspend in those areas account for 90 per cent of the deficit while the council is also some £2m short of its agreed savings plan for the year. The figures represent the council’s position at the end of September half way through the financial year.
Cllr Callard said homelessness is also driving costs and it, and demand on social services, are a continuing impact of the Covid pandemic with the cost-of-living also leading to demand on council services and hitting income.
Inflation in some areas of spending is also still impacting the council along with continuing high interest rates and a shortage of staff resources in some areas.
It will however place a targeted freeze on filling vacant posts among other cost cutting measures including bearing down on all “non-essential spending”.
Conservative opposition leader Cllr Richard John asked if the cabinet intended to maintain its position, from the start of the financial year, it shouldn’t use reserves, described as “severely limited” to plug the spending gap.
The Mitchell Troy and Trellech member said the cabinet had “used up and raided reserves in the previous year.”
But Cllr Callard, who represents Llanfoist, hit back and said this year’s budget is only the second set since Labour began to lead the council but confirmed reserves would be used if necessary. He said: “They are a safety net in order so the council can balance its budget.”
He told Cllr John, whose Conservative group had controlled the council before the May 2022 elections: “The previous administration used reserves far more than this administration has.
READ MORE: Council warns of expected £3.4m overspend
“If there is any plundering of reserves it wouldn’t be by this administration but perhaps why we were in this position, and you needed to use reserves, was the imposition of austerity by the last Conservative government, it might be worth reflecting on that.”
Council leader Mary Ann Brocklesby said she had confidence Cllr Callard and finance officers are “dealing with the deficit”.