Denbighshire Council predicts £650,000 overspend

Denbighshire County Council is forecasting an overspend of more than £650,000.

The council’s net revenue budget is £216.818m, but an overspend of £656,000 is predicted.

Cllr Julian Thompson-Hill gave his monthly finance report to cabinet this week and said the overspend had been reduced from what was predicted at the previous month’s report.

“The projected overspend figure for the year is now standing around about £650,000, which is down slightly from the £835,000, which was reported to the last meeting,” he said.

“The main cause of the reduction of this month’s projected overspend figure relates to the education and children’s services, and it is down to a reduction in some of the specialist placement costs, which haven’t been required for as long as anticipated.”

Cllr Thompson-Hill also informed councillors that Denbighshire had made claims due to losses incurred due to COVID. It was explained Welsh Government COVID funding claims amounted to £3.4m.

Councillors heard how corporate budgets were expected to ‘breakeven’, but there were concerns around council tax collections, and school budgets now have a credit balance of £3.8m, down by £1.8m from the start of the financial year, but this was due only to late receipts of school grants from Welsh Government.

The council has also received a schools maintenance grant of £1.716m, and these funds will be used to improve science labs and refurbish schools such as Prestatyn High and Ysgol Brynhyfryd, which had fallen behind standards of newer schools, such as Rhyl High and Ysgol Glan Clwyd. The report stated this would have a positive impact on both teaching and learning at schools across Denbighshire.