Pembrokeshire council may overspend its budget by £2.1 million, despite previous forecasts of a larger deficit.
The council’s cabinet met in February and saw the budget figures for quarter three. These figures show a possible £1.4 million overspend, an improvement compared to November’s £3.9 million prediction. A £0.7 million shortfall could occur related to council tax collection in 2024-25, raising the total possible overspend to £2.1 million. The council approved the 2024-25 budget last year.
This is the third 2024-25 budget monitoring report. The predicted overspend grew from £2.9 million in quarter one. Councilor Joshua Beynon, in charge of corporate finance, presented the report. The approved budget for 2024-25 is £303.5 million. The council faced increased demand when setting this budget, particularly regarding school ALN, children’s services, adult services, and homelessness.
The rising cost of packages strains the budget, with social care and housing facing £10 million in overspends. Efforts are underway to reduce these costs. These demand levels may continue into 2025-26, creating lasting budget pressures. The council may need more savings, could increase income, or raise council tax.
The projected spending is £304.9 million at quarter three, meaning a possible £1.4 million overspend overall. The council expects a £0.7 million council tax shortfall, resulting in a £2.1 million deficit. This amount will come from reserves and is needed in 2024-25 to make up the difference.
The council will continue a spending freeze. This applies to all non-essential spending and will remain throughout the fiscal year.