Council forecasts £27m overspend in draft budget

Swindon Borough Council said it continues to face an "extremely serious financial position"

A borough council is estimating it will have a £27m deficit in its draft budget for next year, citing increasing care costs.

Bosses at Swindon Borough Council estimate the authority will have to spend around £220m in the next financial year, while receiving an income of £194m.

The gap between income and spending in the council's budget for next year might grow by more than £10m by March, the Local Democracy Reporting Service said.

"The council continues to face an extremely serious financial position," said Councillor Kevin Small, cabinet member for finance.

Members of the council's ruling Labour cabinet are to discuss a report on preparations under way for next year's revenue budget.

The council is forecasting an overspend in this year's budget of more than £3m after a deficit of £14m was filled by receipts from selling some of the council's assets – mainly commercial buildings in Swindon.

The £27m gap comes after £10m in savings has already been identified, £3.5m coming as an early saving as part of the council's transformation plan.

'Transformation plan'

The growth in demand for adult care services and especially services for children, which the council must provide in law, accounts for more than 80% of its spending this year, and is said to be driving the growing budget deficit.

The council's chief executive officer, Sam Mowbray, said: "The less people need us at the council, the better.

"The transformation plan will mean that we provide help and support earlier which means they aren't coming to us at crisis point when any help we can give is also much more expensive."