Cardiff Council accused of ‘losing control’ of budget amid £8m overspend forecast

Cardiff Council has come under fire for allegedly “losing control” of its budget, as it faces a forecasted £8 million overspend. During a meeting on Wednesday, October 9, council officials informed members of Cardiff Council’s policy review and performance scrutiny committee about significant pressures on various council services resulting in excessive spending. A report presented at the meeting indicated a predicted overspend of £8.8 million for the current financial year. The key areas facing financial strain and high projected overspending include children’s services (£5 million), education (£4 million), and economic development (£1.6 million).

Liberal Democrat Councillor Joe Carter, a member of the scrutiny committee, expressed grave concerns, stating, “The situation is dire, and I suppose the worry for us is that we raise these concerns during the budget process… and yet here we are. I am particularly concerned by not just the overspend but actually that the low level of the savings that we agreed back in council that have actually been achieved.” He questioned the achievability of the budget and highlighted the pressing issues at hand.

Cllr Carter’s statement following the meeting highlighted the alarming overspend as an indication of the council’s finances being “out of control.” External placements for children’s services and support services for children looked after were cited as leading causes for overspending in this area. In education, rising demand and cost pressures in home-to-school transport were identified as primary drivers of the budget overrun.

Cabinet member for finance, modernisation, and performance, Cllr Chris Weaver, defended the budget, stating, “It was a realistic budget and it is a realistic budget.” He acknowledged the challenges faced by local authorities nationwide, particularly in areas like children’s services, additional learning needs, and home-to-school transport. Weaver reassured that the council was actively monitoring and addressing the financial challenges.

Income shortfalls from assets like City Hall contributed to the high levels of projected overspend in economic development. City Hall, previously rented out for events, is currently closed for maintenance until 2026. As councils strive to set balanced budgets annually, many have grappled with increasing service demands and escalating costs. In the case of Cardiff Council, efforts were made to fill a £30 million budget gap for the 2024-25 financial year through measures such as price increases and proposed service cuts.

Despite facing financial constraints, proposals to reduce essential services like street cleansing and residential street bins were ultimately discarded. The council’s head of finance, Ian Allwood, noted that mitigation strategies were already being implemented to address the top three areas of overspend. Cllr Weaver emphasised the ongoing evaluation and adaptation of savings initiatives to manage the budget effectively.

The challenges encountered by Cardiff Council reflect the broader financial struggles experienced by local authorities nationwide. In a climate of rising costs and growing demand for services, maintaining fiscal balance remains a significant ongoing concern for councils like Cardiff.