The latest figures from Northumberland County Council show a predicted overspend on the local authority’s budget of £7.5 million by the end of the current financial year. Much of this continues to be driven by pressure on adults’ and children’s care costs.
A report presented to the cabinet said current forecasts put the overspend on adults care at £3.7 million and children’s services at £2.5 million. However, members were also reminded that predicted overspends at this point in the year are not uncommon, and are usually tackled by the end of the accounting period in April.
The report stated that external placements for children “continue to be the most significant area of growth”. There are currently 82 children being cared for outside of the county council’s system.
However, mitigation action taken by the council up to this point has had a significant impact. An overspend of £2.4 million is currently anticipated – without work to invest in additional foster care beds, supported accommodation and kinship care, this figure would be at least £5.1 million.
In adult social care, integrated commissioning services are forecast to overspend by £4.2 million. This is where local authorities and other public bodies, such as the NHS, work together to assess needs, plan, fund and deliver adult social care services more effectively.
The reason for the overspend is put down to a continuing upward trend in demand for services to support vulnerable people with complex care needs. There are 261 people in Northumberland where the annual cost of care per client tops £100,000.
Council Leader comment
Despite the pressure on the council’s finances, council leader Glen Sanderson was quick to defend his administration’s record. Speaking at Wednesday’s meeting of the cabinet, he said: “So many councils over the last 12 months have had to ask the Government for bailouts.
“Meanwhile, we are very strong. That is backed up by the external auditor and independent peer review. That is where we are at the minute.
“Our capital programme has pages of investment – we’re investing in Otterburn First School, we’re looking at the Haltwhistle toilets and putting a new roof on.
“These are little jobs across the county, and there is also the major spending that we are seeing. We’re spending £3 million to improve the council’s social housing stock; investing in car parks in our town centres which remain free; we have built new schools.”
Coun Sanderson also defended the council’s current level of borrowing, which has been criticised by the Reform opposition group. The council’s total borrowing currently stands at £826 million.
The leader continued: “Our borrowing is at 59% of the cap. That figure is coming down, and we inherited borrowing of £761 million.”
The local authority’s borrowing level has decreased by £8.5 million since the start of the year. The cabinet receives a report on the council’s current financial position every three months.
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