BANES Council set to be £6.5m over budget

Councillor Mark Elliott said the council was under "significant pressure"

A council says it is under "significant pressure" as it is set to overspend £6.5m during the next financial year.

A report monitoring Bath and North East Somerset Council's finances said the projected overspend was due to rising inflation and increasing wages.

The news comes after neighbouring Somerset Council declared a financial emergency.

Councillor Mark Elliott said he wanted to "reassure residents" as the council would focus on delivering services.

The cabinet member for resources said services were stretched "as a result of reduced government funding, the longer term impacts of Covid-19 and spiralling inflation". 

He said the council had "managed its finances very capably", with controlled spending and no high-risk investments.

"The reports estimate we will need to find £35.3m in savings over the next five years as well as generate additional income," he added.

Mr Elliott said the council "remain focused on delivering services, supporting the most vulnerable in our community and delivering on the priorities we put before residents at the election".

The report discussed increases in temporary accommodation costs, increasing demand for essential adult and children's social care services, additional demand and costs for home to school transport, and reduced income in the commercial estate.

According to the report, savings and additional income from parking services, the Roman Baths and corporate budgets had helped offset some of the impact.

The report showed £10.6m of savings had been delivered against a target of £14.4m, which were included in the 2023/24 budget.

The report will go before the council's cabinet later.