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Council finances could worsen

Created on 25/09/2017 @ 09:31
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More county council services in Newtown could be hit after it was revealed the council is heading for a £4.3m overspend this year.

Although the figure doesn’t take into account savings yet to be made as part of its ongoing drive to cut costs, the council has been told these savings are unlikely to cover the overspend.

A cabinet meeting has been told by the portfolio holder for finance, Councillor Aled Davies, that efficiency savings were only being included in the figures once they have been achieved.

However, he warned that August’s figures were starting to come through and were showing a worsening position. The council has an efficiency target of £11.78m this year which includes this year’s and the previous year’s targets.

Councillor Davies said an analysis had been completed showing financial outcomes ranging from the current underspent to the lowest achievable, £1.4m if all the savings are made. He said to achieve a medium level an extra £796,000 of savings needed to be delivered.

The cabinet was told the greatest risk at the moment is within children’s services where no savings have been delivered and where there is a current overspend on looked after children. 

The council’s reserves currently stand at £38.8m with £8.7m in general reserves.

Councillor Davies warned unless the agreed efficiency savings are delivered there will be a further draw on the general reserve currently projected to be £4.3m, which would reduce the general reserve to £3.7m.

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