Overspend at Wiltshire Council Worse Than Previously Thought
The leader of Wiltshire Council has stated that the forecasted budget overspend is unacceptable and must be addressed promptly. The council’s financial deficit has grown, partly due to increased demands on adult and social care services.
Initially, the overspend was projected at £6.5 million, but after just three months, this figure rose to £6.6 million. This amount represents 1.3% of the total council budget of £527 million and remains a forecast rather than an actual deficit.
To manage the shortfall, the council had to use part of its reserves in September. Officials have committed to “rigorously controlling costs” and finding savings to ensure the budget balances by the end of the financial year.
Causes Behind the Overspend
- The primary driver is the increasing pressure on adult and social care services.
- This pressure stems from the complexity of the care needed by individuals.
- Additional strain comes from inflation and recent adjustments to employers’ National Insurance rates and thresholds.
“The council is required to deliver a balanced budget, but a previously predicted overspend of £6.5 million has now jumped up to £6.6 million after just three months.”
“The authority says it will 'rigorously control costs' and make savings over the coming months to ensure the budget is balanced at the end of the financial year.”
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The council faces ongoing challenges as it navigates financial pressures intensified by social care demands and economic factors.
Author's summary: Wiltshire Council’s forecasted £6.6 million overspend, driven by adult social care and economic pressures, requires strict cost controls to balance its £527 million budget.
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