Exmouth: £7.3 million overspend predicted by Devon County Council

Devon County Council predicts it will overspend by £7.3 million this financial year in its latest budget update.

Adult care & health and children's services are projected to have the biggest overspends, with County Treasurer Mary Davis warning that "significant pressures are being experienced" in both departments and the situation "will need to be monitored closely in the coming months".

Higher numbers of people with learning disabilities and autism are being cared for than the budget originally allocated, while there are more nursing placements for older people than forecast too. In addition, more children are being placed with independent foster carers than budgeted.

However, Ms Davis, who will present her forecast to the council's ruling cabinet on Wednesday 8 September, adds: "It is very early in the financial year and much will inevitably change as the year progresses."

Her report also predicts a £33 million overspend on special educational needs and disabilities (SEND) this year. However, this does not currently count towards the main revenue figures because the government has told local authorities to allocate SEND overspends to a separate ring-fenced account for three years until April 2023.

At the start of this financial year, Devon's account was already £49 million in the red. Together with this year's projected overspend, the total is currently set to be £82 million next April.

Councillors on all sides want the government to say what happens to that balance when the ring-fencing arrangement ends. Next week's Devon report reveals a management plan that "seeks to ensure children with SEN receive the support they need," addresses the yearly overspends, and has a projected savings target of £5.5 million this year.

"Successful delivery of the plan should mean that the DSG [dedicated schools grant, allocated by the government] balances the in-year position during 2023/24, with the accumulated deficit starting to be reduced the following year," Mary Davis says in her report.

"Several discussions have taken place with representatives from the Department for Education this financial year, and the detailed management plan submitted to them. These early discussions have been positive, but it has been acknowledged that the plan and timescales involved are very ambitious."

The council's ruling cabinet will also be shown details of the government's financial contribution to cover the increased cost of services during the pandemic. Devon County Council currently expects to receive £36 million this financial year is, in addition to the £25.6 million carried forward from last year.

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