BY the end of the financial year, it is predicted that Powys County Council (PCC) will be over £4.3 million overspent.

After the savings plans and efficiencies have been submitted by the various departments, the financial team will have a mammoth task of trying to chisel away at that figure to bring the 2019/20 budget in on balance.

The total budget saving needed for this financial year is just under £13 million and work has been done in the first three months of this financial year, to find where £7.8million can be saved.

This leaves £5.141 million that still needs to be found by March 31, 2020.

Finance portfolio holder, Cllr Aled Davies (Conservative – Llanrhaeadr-ym-Mochnant-Llansilin), said: “The report highlights the service areas their budget and forecast spend.

“Clearly the areas of concern are chicldren’s services and highways, transport and recycling.”

Cllr Davies pointed out that if the savings were not made, the council would have to dip into its general reserve account, reducing it from £9.1 million to just over £4.6 million.

He also pointed out that there were problems with the Schools Delegated Budget which is predicted could need to use £2.75 million of its reserves.

“This does put the schools delegated budget into a negative position and has implication for the whole council, it’s an area of serious concern,” said Cllr Davies.

He added that he hoped savings plans would be delivered through the year.

Head of finance, Jane Thomas, said: “At quarter one that level of overspend it’s absolutely critical that we reduce that as we go on throughout the year.

“The undelivered savings will more than mitigate that value of overspend, and the detailed report we will now be working on with heads of service to establish how much of that savings will be delivered by the end of the year.

“It’s critical to us understanding where we will be.”

Ms Thomas added that the finance department had seen similar positions in the past after the first quarter.

“Savings delivery is beginning to happen but is not there completely,” she said.

“We would anticipate there will be improvements on this but we do need to be absolutely sure this will happen and then identify if any other mitigating action needs to be taken.”

This would include the use of £2 million set aside when the budget was set in March to lighten the pressure in the Children’s Services department, and/or freezing departmental budgets for the rest of the year.

Ms Thomas added that the cabinet would see the update in September and what “needs to happen from that point on.”

Council Leader, Cllr Rosemarie Harris (Independent – Llangynidr) added: “We’ve had 10 years of extreme pressure and it’s difficult for all services.”

The report was noted and passed by cabinet.