Cardiff Council Accused of ‘Losing Control’ of Budget Amid £8m Overspend Forecast
A councillor has accused Cardiff Council of losing control of its budget with the local authority currently predicted to overspend by millions of pounds this year. Members of Cardiff Council’s policy review and performance scrutiny committee were told by council officials at a meeting on Wednesday, October 9, that there have been huge pressures on a number of council services leading to high levels of spending.
A report presented to the scrutiny committee shows there is a projected overspend for this year of £8.8m as at month four of the financial year. The biggest areas of pressure and high projected overspend include children’s services (£5m), education (£4m), and economic development (£1.6m).
A Liberal Democrat member of the council on the scrutiny committee, Cllr Joe Carter, said: “The situation is dire and I suppose the worry for us is that we raise these concerns during the budget process… and yet here we are. I am particularly concerned by not just the overspend but actually that the low level of the savings that we agreed back in council that have actually been achieved.”
One of the main causes for overspend in children’s services at Cardiff Council is external placements – putting children who are under the care of the council in placements out of county. Further overspend in this directorate relates to support services for children looked after and shortfalls against savings targets relating to escalating costs in the council’s children with disabilities packages.
In education, overspend is largely being driven by the high demand and price pressures in home to school transport. Cardiff Council’s cabinet member for finance, modernisation, and performance, Cllr Chris Weaver, stated that these challenges are common themes across local authorities due to the external factors driving demand-based services.
Income shortfalls from assets like City Hall have partly led to the high levels of projected overspend in economic development. The council has been working on mitigations for the overspend in various areas, with ongoing monitoring and adjustments to address the financial challenges.
Despite the pressures on its budget, Cardiff Council continues to navigate the financial landscape, making adjustments and seeking solutions to manage the anticipated overspend. The council aims to face its financial challenges head-on and ensure effective financial management in the coming months.