ARGYLL and Bute Council officers are forecasting an overspend of £4.56M for the financial year – a figure which has grown by nearly £500,000 in two months.
Most of the forecast is down to a forecast overspend of £2M on social work services, and £1.6M on various roads and infrastructure services including public and school transport.
A £780,000 overspend is also forecast due to repairs after the severe weather incident of Saturday, October 7, 2023.
A report has also revealed that the council had reached an overspend of £4.9m as of Hallowe’en.
The document was before the authority’s policy and resources committee at its meeting on Thursday, December 5.
When the committee last met in October, a forecast overspend of £4.096m as of August 31 was reported.
Executive director Kirsty Flanagan said: “Within social work, [there is] a forecast overspend of £2.049m relating to demand for residential placements within children and families and older people’s services.
“Within roads and infrastructure services, [there is] a forecast overspend of £1.61m, mainly due to increased bus contract renewals for public and pupil transport across Argyll and Bute, additional costs relating to repairs to the Belnahua ferry, temporary accommodation, the transport of ASN (additional support needs) pupils and two unrealised savings for additional income from traffic regular orders and stadiums.
“These overspends are partially offset with additional income in waste disposal and reduction in landfill tax costs due to reduced tonnage within Helensburgh waste disposal.
“An overspend of £0.78m is being reported in relation to the severe weather incident of October 2023. This relates to the proportion of the total estimated cost which [the] policy and resources committee, on August 15, agreed to be funded from Crown Estate funding and shows as an overspend at this time pending confirmation of the funding for 2024/25.
“Within education, [there is] a projected overspend of £0.188m due to the schools residential budget having a higher demand for placements than budget allows.
“[This is] partially offset by lower than anticipated spend in catering purchases, receipt of historic water refunds, slippage in education 100 day promise budget due to delays in recruitment and a lower spend on condition surveys due to favourable market conditions and procurement.”
Ms Flanagan added: “Central budgets currently include a forecast overspend of £0.252m for 2024/25 pay awards as the Scottish Government requires councils to fund 3.2 per cent while the budget only has three per cent built in. This is recognised within other operating income and expenditure for current monitoring purposes.
“The pay offer will be implemented before Christmas, with additional match funding assumed. Implications of the pay offer will be reflected across departments in the new calendar year, subsequent to processing actual pay.
“There is currently a forecast overspend of £0.261m which includes the above and a forecast overspend in relation to the inflation on insurance being higher than estimated, partially offset by lower than anticipated contributions to joint boards.
“Within funding, an over-recovery of council tax income on second homes of £0.328m.”
