Wiltshire Council forecasts £8 million overspend

A review of Wiltshire Council’s quarter one revenue budget position has revealed a forecast net overspend for the year of £8.284 million.

The vast majority of this overspend is caused by the cost of adult services, with a forecast additional cost of £7.930 million compared to the original budget approved in February.

READ MORE: Wiltshire Council's cabinet quizzed on £14m underspend

The cabinet approved the transfer of £2.237m to a new high needs sustainability activity reserve. (Image: Jessica Moriarty) These figures were discussed in the cabinet meeting held on Tuesday, September 17.

Cllr Nick Botterill, cabinet member for finance, acknowledged that it wasn’t “ideal” and assured his colleagues that he was taking the matter “very seriously”.

He said: “We’ve got adequate reserves, but we don’t want to spend them in plugging gaps like this.”

He added: “I’m advised by officers that measures will be put in place, that these areas of overspend will be addressed and brought back as much as possible into line, and those areas where we are ok will be solidified and enhanced as much as we can.”

Cllr Botterill concluded: “We’re not going to lose that reputation.

“We’re going to end the year in a good place.”

SEE ALSO: Key takeaways from Wilshire Council's crunch budget meeting

Wiltshire Council’s leader, Richard Clewer, noted that the council regularly reports overspends in its quarter one review.

He said: “We’ve never failed to deliver a balanced budget at the end of the year.”

Cllr Clewer added: “Our forecast overspend is lower than any of our neighbours that I could find.

“I don’t actually take any comfort in that, but I do take a sense check that the same pressures, particularly in adult social care, are hitting the whole sector.”

Wiltshire’s Liberal Democrat leader, Ian Thorn, agreed that the overspend reflected the “exponential challenges” faced by the council through the county’s demographic shift.

By the year 2040, the number of Wiltshire residents aged 85 and over is expected to have increased by 87 per cent, whilst the number under the age of 65 is expected to have decreased by 3 per cent.

Lizzie Watkin, the council’s director of finance, said: “Obviously, an eight million pound overspend is something that, as a council, we cannot tolerate.”

She stated that “absolute, immediate action” was being taken to address the issue.

According to the financial report, the majority of the overspend is due to the increased demand and cost of care packages.

The adults being referred to some of council’s services are “increasing in complexity” with a “notable increase in the people who have autism and mental health needs.”