Monmouthshire County Council Faces Financial Pressures Amid Overspend in Social Services

Monmouthshire County Council's ambition to make cuts to social care "too quickly" has led to a £2.4 million overspend in adult social care services and a £1.4 million overspend in children's services in the 2024/25 financial year. Despite these overspends, the council finished the year with a £1.2 million surplus, thanks to "financial discipline" and additional grants from the Welsh Government. However, the council faces a projected revenue budget shortfall of £13.6 million in 2026/27 and £38 million over the medium term by 2029/30.

Key Takeaways:

• The council's adult social care services finished the 2024/25 financial year £2.4 million over budget.
• Children's services came in £1.4 million above its agreed allocation.
• The council still achieved a £1.2 million surplus, which was a 0.6% variance against the budget agreed in March 2024.
• Councillor Ben Callard, Labour cabinet member for finance, attributed the surplus to "financial discipline," including a recruitment freeze and receipt of additional grants late in the year.
• However, Cllr Callard warned that the grant funding from the Welsh Government is not guaranteed in future.
• The council faces a projected revenue budget shortfall of £13.6 million to fund day-to-day services in 2026/27, rising to £38 million over the medium term by 2029/30.
• Since 2010, the council has made more than £83 million in savings and "absorbed" more than £31 million in cost pressures in the past two years.
• Chief financial officer Peter Davies admitted that the council may have been overly ambitious in making cuts to social care, citing "early indications" as similar levels of overspend not being predicted this year.
• The council has a savings target of £10.94 million in its 2024/25 budget and achieved 81.6% of those.

Statistics:

• £2.4 million overspend in adult social care services in 2024/25.
• £1.4 million overspend in children's services in 2024/25.
• £1.2 million surplus in 2024/25.
• 0.6% variance against the budget agreed in March 2024.
• £13.6 million projected revenue budget shortfall in 2026/27.
• £38 million projected revenue budget shortfall over the medium term by 2029/30.
• £83 million savings made by the council since 2010.
• £31 million in cost pressures "absorbed" by the council in the past two years.
• 81.6% of the £10.94 million savings target achieved in 2024/25.

Sources:

• Monmouthshire County Council
• Welsh Government
• Councillor Ben Callard
• Chief financial officer Peter Davies
• Performance and overview scrutiny committee chair Alistair Neill