Council reports underspend at end of financial year despite continued pressures
Officers said the figure was boosted by Welsh Government grants that "significantly masks" underlying budget pressures
Bridgend County Borough Council have reported a net underspend on their budget for the 2024-25 financial year. The report came at a full council meeting in June where members heard how there had been net under spend of £300,000 from their annual revenue budget, which has since been transferred to the council fund.
Those in attendance reacted positively to the news, though acknowledged that the figure "significantly masks underlying budget pressures" due to Welsh Government grants that were awarded late in the financial year.
The saving came from a total revenue budget of £360m which is used by the council to cover its day-to-day cost for running essential services such as waste services, schools, and social care services.
Despite the overall underspend the report highlighted that there was still a net overspend of £2.37m from directorate budgets with continued pressures seen in areas such as home to school transport, children's social care, and additional learning needs services.
It added that the main reasons for the underspend was because of "unanticipated" Welsh Government grants of £3.2m towards the teachers' pay award and a further £2.024m to go towards revenue cost pressures.
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Elsewhere the authority saw a £1.5m reduction in the overall insurance fund liability after a number of claims were "repudiated or discontinued" with additional council tax premiums on long-term empty properties and second homes boosting council tax revenue by £611,000.
The majority of this sum came from long term empty properties, though the report said if these premiums hadn't been collected the expected council tax income would've fallen short by £99,000.
Officers in attendance described the 2024-25 financial year as being "complex" when it came to managing the overall budget position, in a situation that was reflected across all local authorities in Wales.
They also said they would have to continue to work hard in the coming year in order to keep spending within the allocated budget, highlighting a shortfall in targeted savings of just over £1.5m.
Speaking at the meeting councillor Hywel Williams of Blackmill said the report would now go back to councillors for a further scrutiny session this month.
The council's leader John Spanswick added that despite an increase in demands things were "going in the right direction".
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Councillor Ross Penhale Thomas of Maesteg West said with budget pressures being felt right across Wales the council should continue to lobby for multi-year funding settlements for local authorities as this would allow them to better plan ahead and think long-term. For the latest Bridgend news sign up to our newsletter here.
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