Herefordshire Council set to overspend by £9.5m

Thirteen measures have been proposed to help Herefordshire Council tackle its overspend

A council is set to overspend on its budget by £9.5m this year - even with measures to reign in spending.

Herefordshire Council has already put in measures to save £4m, according to its first budget forecast for the current financial year.

But its head of strategic finance, Rachael Hart, has said "further recovery action" must be identified.

She has recommended 13 further actions, including a freeze on spending on "non-essential" items.

The Local Democracy Reporting Service said she also recommended restrictions on recruitment, a "sustained reduction" in using agency and "high-cost interim" staff, and maximising the council's income.

"The timely delivery of further actions recommended in this report is critical," she wrote in a report.

As in previous years, the council's largest overspend will be in the children and young people directorate, which "faces growing demand, greater complexity, national challenges in workforce recruitment and retention, and increased financial constraints", the report added.

The department has yet to show any progress towards a £4.5m package of savings it was tasked with, it said.

Meanwhile, transport costs for children with special needs have risen by £1.1m, through a combination of inflationary pressures and rising demand.

Lack of local capacity has led to an above-inflation rise in the cost of looked-after children's residential placements, many being made outside the county, while a lack of foster carers has meant using more expensive alternatives such as fostering agencies, leading to a further £500,000 overspend.

The report suggests reuniting families "to support the step-down of care where it is considered safe and appropriate" is recommended among options to address this.

The council's central, corporate services also has a £2.4m overspend, including £300,000 within chief executive Paul Walker's office, "due to staffing cost pressures".