Devon County Council looks for savings in the face of a predicted £5m overspend

Devon County Council is expecting to face a £5million overspend this year despite making some savings.

The council’s cabinet heard finance leaders were predicting a £5.4m overspend this financial year, which ends in April, but this was an improvement on an earlier estimate.

Councillors were told so far it has saved £2.4m, with a roughly even split coming from its adult social services department and children’s services.

But the situation continues to deteriorate within its schools budget, which is kept separate from day-to-day spending.

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The council now expects to overspend by £61.6m – a rise of £4.2m compared to its last overspend prediction.

Councillor James Buczkowski, the cabinet member for finance, said the administration was being “honest about the scale of the challenges.”

He said: “Progress is being made but a £5.4m overspend is still a serious position and not one we should be relaxed about, albeit there has been an improvement.”

Cllr Buczkowski said there had been “tighter financial controls” and “better scrutiny of placements” within its key social care services and that the reduced use of agency staff had also had a positive impact on coffers.

He added: “Our planned savings are on track and that’s despite the loss of some of our originally planned savings and the need to identify others.”

He said the outcome was ‘cautiously encouraging’, adding there was still time in the financial year to try and reduce the overspend.

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