Powys County Council spends £6.5m less than expected

Powys County Council underspent by £6.5 million in the last financial year despite overspending in three departments, it has been revealed.

The authority's adult, children and schools service overspent by more than £1.7 million during 2011/12.

Adult social care also spent £845,000 more than its budget and children's services overspent by £338,000.

But overall the council was within budget by £6,513,000. The figures were signed off by members of the council's cabinet at a meeting at at County Hall in Llandrindod Wells yesterday.

Councillor Dai Davies, portfolio holder for finance, said the overspends in the three departments were offset by major underspends in other areas such as housing and environmental services.

And he added the council had been forced to dip into reserves to help departments which had exceeded their budgets. Councillor Davies said:

"The revenue budget approved by the council for 2011/12 was £233.060 million.

"The final working budget was £246.050 million and the out-turn position was £239.537 million, which is an underspend for the year of £6.513 million against the working budget.

"Adult, children and schools service all overspent on the budget, totalling £1.710 million and this has resulted in a £1.359 million call upon service area reserves.

"Adult social care overspent by £845,000, this was funded by service area reserves and reduced the reserve balance to £976,000.

"Children's services overspend was £338,000 and predominantly due to increased costs for looked after children and legal costs.

"The overspends were offset though by significant underspends in other areas."