County council on course for £12.5m overspend

Worcestershire County Council's share of council tax had already risen by 4.99% for 2024/25

Bosses will need to step up their efforts if Worcestershire County Council is to avoid a projected overspend of £12.5m this year, a report has said.

Inflation, demand for services and social care placements have driven up costs beyond expectations, the authority has admitted.

The forecast overspend comes despite councillors agreeing £37.2m of savings and reforms for the local authority's 2024/2025 budget, and the planned use of £7.9m of reserves.

A financial report is due to be discussed by the council's Conservative-controlled cabinet next Thursday.

"This financial year continues to be a challenging time for local government and the County Council is no exception," the council's resources report stated.

The review of the council's budget covers its financial position at the end of September, six months into the current financial year.

While it says the projected overspend has improved slightly since June, it has come after the use of £7.9m from the county council's risk reserves.

It also said the majority of the overspend forecast was based on demand being faced within adult and children's social care, home-to-school transport, along with the ability of the council to deliver its savings targets.

Further reserves at risk

In adult social care, an overspend of £4.7m was being generated through rising costs, and increasing demand for placements.

The local authority now funds care packages for more than 7,000 people.

Support for looked-after children was also a major factor behind a projected £7.6m overspend in children's services.

The resources report also said that not all of the £37.2m of savings and reforms planned for the financial year were likely to be achieved, with £4.9m "unallocated and at risk of non-delivery".

It concluded that if further budgeting measures were not set out, then the current year overspend of £12.5m would have to be paid for from further reserves.