Council predicts £9.3m overspend of finances

The £9.3m figure is a reduction on the £11m overspend the council predicted earlier this year

A council has projected an overspend of £9.3m for the year amid a financial situation that remains "serious and sombre."

The amount is an improvement on the £11m figure Stoke-on-Trent City Council predicted in June, but leaders said it was still in a "challenging" position.

A financial report said the overspend primarily related to children and family services, which accounted for £6.3m of the total amount.

The council was handed a £42.2m financial support package from the government earlier this year, which it said would save it from effective bankruptcy.

Some of the government funding is being used to cover overspends in current and previous financial years, while a portion is being invested in transforming children’s services to reduce the number of youngsters in care.

Councillor Alastair Watson, cabinet member for financial sustainability, said that a reduction in the number of children in care, from 1,148 in June to 1,115 in September, was now being reflected in the updated financial figures.

However, Adult Social care and Commissioning has seen its overspend increase to £2.3m, due to rising demand and costs.

Watson told a cabinet meeting that the overall situation was still difficult but that the council was slowly turning things around.

“Quarter two shows a slight improvement on quarter one, although we need to be clear that the financial situation remains quite serious and sombre," he added.

"It isn’t just the case here. Across the country, councils like ours, of all political persuasions, are facing a very challenging climate in terms of their funding."

According to the latest financial report, the council is carrying out other measures to reduce its overspend, including a freeze on non-essential spending, controls on recruitment, and tighter rules for how it purchases goods and services.