Spending soars ahead of expectations at Rotherham Council
Four months into the year and council spending is too high
Rotherham Council is on course to overspend by half a million pounds a month in the current financial year, it has forecasted.
A breakdown of the figures looks worse still, because the directorates - the ‘wings’ of the council which are responsible for different services - are actually projected to overspend by almost £11m by the end of March.
The final figure is only dragged back down by the central services unit spending £5m less than budgeted for, on current projections.
Now council chiefs will be looking to make savings “at pace”.
Reasons for cash going out faster than expected are put down to social care costs spiralling, both in terms of what the council has to spend on care and on increasing numbers of people needing assistance.
Costs of dealing with waste and increases in home-to-school transport have been blamed for the Regeneration and Environment Directorate looking at a £3.2m overspend alone.
Costs of placements mean the Children and Young People Services team is expected to need £5.5m more than anticipated, with Adult Social Care expected to need £2m more, due to the pressure of demand and the complexity of care packages put together.
The council has cash in reserve, but is now expecting to put measures in place to try to minimise the need to use that cash - which is only available once.
A council report is optimistic that “the council will be able to manage this situation and reduce the projected overspend.”
But it continues: “The council cannot forecast that improvement until clear actions have been identified.”Saving measures would be “implemented at pace for maximum effect”, it said.