Action call over Powys Council overspend

A report being considered by Powys County Council's cabinet this week shows that the council is facing a projected overspend at the end of the 2018/19 financial year of nearly £8 million if planned savings are not made, and one of nearly £6 million even if the savings are achieved.

Welsh Lib Dem/Green Party leader on the council, James Gibson-Watt said: "This position is placing the council and all its services at risk.

"Nobody doubts that Powys, like all local authorities in Wales, is feeling the effects of sharp reductions in funding by the UK’s Conservative Government, which has had a devastating effect on local authorities in England and has fed through in to reduced funding available for local authorities in Wales.”

“But it is still very unclear how, for example, Powys’s Children’s Services budget, which was increased from about £12 million to about £18.5 million between 2017/18 and 2018/19, is still projected to be overspent by a further £5.5 million this year.

"It is absolutely essential that the council establishes a safe and effective service to protect and support vulnerable children and young people in Powys.

"But the service’s budget must be more carefully managed as spending at current levels is completely unsustainable without further severe cutbacks to other vital services, which of course will also harm those vulnerable children.”

“The Highways, Waste and Recycling budget is also projected to overspend this year, by over £2 million, due to increased fuel and transport costs. This is surely in part due to the devaluation of sterling following the Brexit referendum and just shows how Brexit is already damaging the council and its services.

“The cabinet must regain control of the council’s budget. Relying on fast-dwindling reserves to bail it out simply will not do.”

The council has been wrestling with its finances for years, due to a lack of money coming from the government and other areas needing further spending, such as the troubled children's services.

Councillor Elwyn Vaughan added: "It's naturally worrying that it looks as though further millions will have to be used to balance the books in Powys.

"This situation cannot continue and is not sustainable.

"At a time when Mrs May has stated that austerity has finished,we now need those words to be followed with actions. Public services cannot continue to be hammered as it is. Action is stronger than words Mrs May."