RISING social care costs are set to cause an £8 million overspend at Worcestershire County Council.
The authority says every other department is operating under budget but growing social care pressures could contribute to a £85m budget gap next year.
At a cabinet meeting on Thursday (September 24), deputy leader Adam Kent said the forecast overspend is not an indicator of a wider loss of financial control.
He said significant government reform of the social care system is needed.
“We’ve got a long-term plan and funding for highways,” said Cllr Kent, the cabinet member for finance. “What is it for social care?”
Cabinet papers show a £15.5m overspend across the council – almost all of it in adults and children’s social care.
LEADER: Matt Jenkins said the government has not yet written off £174m of the council’s DSG deficit, as it promised to do (Image: Matt Jenkins)
Savings made in other areas have brought the total overspend down to £8m.
This includes a £2m underspend on Home to School transport, which has historically been another major financial pressure for the council.
Cllr Kent said a £12.1m contingency fund was used up just three months into the current financial year.
He also took aim at the government’s exceptional financial support (EFS) policy, which the council has needed to use both this year and last year in order to deliver a balanced budget.
“EFS is not new money,” said Cllr Kent. “It is permission to borrow and future taxpayers will be paying it off over the next 20 years.”
He said local government finance expert Prof Tony Travers has called EFS successive governments’ “most disgraceful policy”.
“It is doing nothing to fix the strategic deficit,” said Cllr Kent. “And local government reorganisation (LGR) has been a fiasco from start to finish.”
Council leader Matt Jenkins agreed EFS was not a long-term solution.
He also called out the government for not yet writing off £174m of debt accumulated via the Dedicated Schools Grant – ring-fenced education money.
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Cllr Jenkins said the delay has so far cost the council £5m and pointed out the council will still be left with the remaining 10 percent of the debt even when it is paid off.
Former council leader Adrian Hardman warned that Worcestershire could end up being a statutory-only organisation – providing only the services it has to by law.
Cllr Jenkins said it was “very difficult” to see the council existing in a few years’ time without LGR.
Cllr Kent said: “The statutory point is well heard – we might not have any choice.”
