Predicted annual overspend of £6m in day-to-day budget

An overspend of nearly £6 million is being predicted for Devon County Council this year on top of its special needs deficit.

Councillors heard that the authority’s children’s services, including social care, account for most of the extra costs, but officers are seeking ways to save money.
The prediction is for the end of the financial year in April, and can change before then.
The current figure, calculated in July, is the most recent publicly available data.
Cllr Phil Twiss (Conservative, Feniton & Honiton) told the council’s cabinet meeting this will that it is early in the financial year, and that it has achieved greater savings before.
“There is pressure in adult social services and children and young people’s futures, as well as corporate services,” he said.
“But we have a good level of confidence that we can deliver our budgeted savings.”
Angie Stewart, the council’s director of finance, added that the £6 million overspend prediction should fall.
“If we can’t pull back the overspending on general fund services, it could be a draw on reserves, but that’s not what I’m expecting at the moment,” she said.
“I’m expecting that overspend to be pulled back and there is cross-organisational work on that, so I’m expecting to see an improved picture by month six of the financial year.
“And that’s not because that’s what usually happens but because we are taking positive action and have a good track record.”
However, the deficit linked to the council’s special educational needs and disabilities (Send) budget is allowed to be considered separately from core finances.
The prediction is that the Send budget will overspend by £38 million in the current financial year.
The council identified nearly £50 million in potential savings when the budget was set in February, but as at the end of July, only £46 million of these as possible.
Officers colour-coded budgeted savings to demonstrate how achievable they are.
“In particular, savings classified as amber, where the need for closer management focus has been identified, present a risk to the forecast position,” a report for councillors stated.
“Of the £13.7 million forecast savings rated amber to be delivered, £4.6 million is currently classified as achieved.”
The children and young people’s futures appears most under pressure, with a forecast overspend for the year of £6.6 million, while adult social care is expected to have a £1.1 million overspend.