'Cause for concern' as Portsmouth City Council faces overspend of £800,000 on children leaving care
and live on Freeview channel 276
A budget monitoring report for the third quarter of the 2021/22 financial year shows children's social care had spent £2.3m more than forecast due to 'a small number of very high cost care leavers' as well as increasing numbers of people passing through the system.
The failure of the council to find a sponsor for the Spinnaker Tower has also left it with a £700,000 shortfall.
Advertisement
Hide AdAdvertisement
Hide AdDespite the use of several reserve and contingency funds, the report shows the council had an estimated overspend of £802,700 although it says this could be covered by the use of a further contingency fund if it could not be covered by the end of the year.
However, council director of finance Chris Ward has warned the position was still 'a cause for concern'.
'Whilst the approved budget [for] 2022/23 has sought to remedy unavoidable budget pressures, such as many of those being experienced in the current year, there remains longer term uncertainty relating to further increases in demand,' he said. 'Should this persist, the council's savings requirements in the future could rise.'
His report recommends that council directors and cabinet members work to 'eliminate deficits in the medium term'.
Advertisement
Hide AdAdvertisement
Hide AdIt comes after The News reported the council’s budget forecasts for the coming decade, show net debt increasing from £461m to £819m by 2025 due to ‘costly’ redevelopments, which it warns could force the sale of some of its investments.
A message from the Editor, Mark Waldron
Subscribe here for unlimited access to all our coverage, including Pompey, for just 26p a day.
Comment Guidelines
National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.