Torbay Council in predicted £3.7m overspend after budget savings failures

http://www.bbc.co.uk/news/uk-england-devon-34200313

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A £3.7m overspend has been predicted by a council that believes it will fail to meet planned budget savings this financial year.

Torbay Council said the overspend would mostly be in its social care budgets for adults and children and said it was a "cause for concern".

The authority's revenue budget monitoring report said it had recovery plans and was looking for more savings.

The issue will be discussed by the Conservative-led Devon council later.

The unitary authority's budget monitoring report said the predicted overspend on adult social care was £1.9m because of an increase in demand, but mostly as a result of Torbay and Southern Devon Health and Social Care NHS Trust not making required savings in 2015-16.

However, the report said the savings were expected to be made in future years.

The council and the trust said in a joint statement they would work together to manage the financial pressures.

A spokesperson said: "The trust has identified additional opportunities to reduce the forecast overspend by the end of the financial year. In the meantime, we are all committed to the continuous provision of good quality care for local people."

The authority is also expecting an overspend of £1.7m in social care for children because planned savings have not been made and the "high use" of agency staff.

An overspend is also expected in Customer Services and Community Services, which will result in the total of £3.7m.

In the report the council said: "Recovery plans have been commissioned for both social care areas and the council's senior leadership team have initiated action to limit uncommitted expenditure and to look to identify savings in other services with the aim of achieving a balanced budget position.

"The 2015-16 budget relied on the achievement of £11m of approved savings. The majority of savings are being achieved."