Bridgend Council has reported an overspend on its annual budget for the 2023-24 financial year of more than £7 million. Members were given what they said was a “sobering report” at their most recent full council meeting. They were told of the authority’s current position heading into the 2024-25 financial year, with the overspend largely attributed to ongoing pressures within the social services and wellbeing directorate, as well as in home-to-school transport, homelessness, and legal fees.
To address this overspend, £6.952 million of “other earmarked reserves” will be used, along with a transfer of £102,000 from the Council Fund. However, it was noted that relying on reserves to fund services long-term would not be sustainable. The overall out-turn at the end of March 2024 showed a net overspend of £7.054 million, with £13.839 million overspent on directorates and a net underspend of £5.279 million on council-wide budgets.
Opposition members raised concerns about budget forecasting, given the “astronomical figures” and the predicted overspend in the first quarter of the current year. Council officers explained that it was the first time the authority had overspent on its annual budget due to exceptional circumstances, with unforeseen demands for services. The leader of Bridgend Council, Cllr John Spanswick, stressed the need for essential spending only and urged officers to be mindful of expenditure, with ongoing efforts to control costs.
Members deliberated on the out-turn report for the 2023-24 budget after extensive discussions. Looking ahead, the council faces challenges in making difficult decisions to align its spending with available resources. The council aims to live within its means and address financial constraints in the upcoming months. The Bridgend Council’s response to the overspend underscores the importance of prudent financial management to ensure the sustainability of public services going forward.