Herefordshire Council overspend worsens, but 'can be controlled'

Herefordshire Council faces a large bill for children and young people's services.

Herefordshire Council can balance its books despite financial concerns, a senior councillor has said.

Based on figures for the second quarter of this financial year, its overspend increased by £300,000 from the previous forecast, to £13.8m.

Over 85% of that comes from the council's children and young people department.

But cabinet member Pete Stoddart said the financial position "remains very stable".

He said that despite the challenges the authority faced, "our reserves are above average, and we have low levels of borrowing".

The Conservative councillor added: "Cabinet are fully committed to delivery of savings in full and on time to ensure that the 2023/24 outturn position is balanced, and to prevent further pressure on future years' budgets."

'Disappointing'

Spending and hiring decisions in each council department now have to be separately approved, with any expenditure over £500 to be passed by department heads,

Auditors Grant Thornton have signed off the previous year's Herefordshire Council accounts - making it the first local authority of its kind to achieve this, Mr Stoddart added.

Independents for Herefordshire leader, Liz Harvey, who dealt with finances in the previous administration, said it was disappointing to see a lack of savings from the children's department.

"In your place I would be feeling really let down, given the savings opportunities that were presented to us as deliverable," she said.