Powys CC £7 million behind savings

Powys County Council's cabinet will meet on Tuesday in Llandrindod Wells for the first time since the summer break, and will discuss a report from finance portfolio holder Aled Davies on the state of the council's finances.

The report is similar to one at the same point last year, however it has found the council is £7.7 million behind on its savings target.

The revenue expenditure out turn against budget is projected to be £4.9m over budget, and that is based on savings achieved to date but also reflects assurance that further savings will be achieved in the year.

Councillor Davies, who is also the deputy leader, said: "This position is not dissimilar to that reported at the same point last financial year.

"However, the out turn position improved significantly by year end, and was finally reported as an underspend.

"A number of factors contributed to the improved position including the receipt of additional unexpected funding from Welsh Government, improved income collection, previously unreported underspending in some budgets and capitalisation of transformation costs, all of which eased the pressure on the revenue budget."

Savings have already been made to the tune of £4.5 million in the current year.

Schools services and adult social care are reported to have done well with their budgets, however children's services has been allocated more than £1 million extra since the council met in June.

Mr Davies added in his report: "There has been a further increase in the projected spend for the service with the out turn position now projected to exceed the budget by £5.276m a further £1.375m since that reported in June.

"The appropriate workforce establishment has now been agreed and although funding for this is accommodated within the service budget, following the investment provided, many posts are being covered by agency staff at a higher cost per post."