Cheshire East Council published their first quarter review last month which revealed that spending is forecast to exceed their annual budget by £7.7m.
The Council faces budget pressures totalling £22.3m but measures to save £14.6m have been identified so far.
The areas of overspend include; care costs for adults; costs for children in care and staffing; waste and recycling collection and transport costs.
A spokesperson from Cheshire Labour Group said "The council seems to be stuck in a pattern of setting unachievable budgets. Yet again the council is forecasting a massive overspend. Next we will have the panic short term cuts to try to balance the books, which result in higher long term costs meaning that next year's budget is unachievable.
"The Tory priority is always to cut services too far and too fast leading to disasters like Lyme Green where £800,000 was spent on building the foundations of a waste transfer facility which is unfinished and still hasn't got planning permission or the £450,000 spent on a children's home in Brereton which wasn't properly staffed and has now had to be closed."
The Labour Group highlighted that one of the biggest projected overspends this year is £1.1m on transport costs.
Cllr Steve Hogben said, "When the budget was discussed only a few months ago, Labour said that the proposed cuts were not achievable. I suggested an additional £890,000 for school transport. This additional funding would have made the proposed savings achievable. The Tories rejected this proposal and pushed ahead with their plans for drastic cuts. Now we are told that by trying to cut too far and too fast the Tories will actually spend more than Labour had proposed. Labour proposed spending an extra £890,000 to preserve the service, but the Tories will now have to find an extra £1,100,000 and they have cut the services."
Conservative Cabinet Members responded "The First Quarter Position Accounts clearly show that the overspends are largely related to Adult and Child Care where the Council responds to people's acute needs, and where we admit demand may have been under budgeted. To put this into context the potential overspend is equivalent to 3% of the budget and Council continues to work on improvements to our budget predictions.
"Cheshire East has successfully reduced back office staff and as a result reduced spending per household by 10% since 2010 while still maintaining services. This is a real achievement from our Officers and the report clearly shows that we will not cut too fast if this means risking essential services.
"The Labour press statement quotes a number of specific projects relating to waste where in fact millions have been saved through the new Silver Bin scheme; and transport where the Council's subsidies have been reduced consistently but are still higher than most authorities. We do not pretend mistakes never happen and are working to improve project procedures. However our record on reducing cost is strong and something we are proud of."
The First Quarter Review of Performance 2012/2013 can be downloaded here, starting on page 11.
Comments
Here's what readers have had to say so far. Why not add your thoughts below.
The official, independent report says,
“I identified weaknesses in its processes to develop business proposals and manage significant projects. These weaknesses undermine the Council’s ability to show that it is prioritising resources within budgets and achieving sustainable cost reductions alongside greater efficiencies and improved productivity.”
For full report see http://bit.ly/Pzyf9R
I don't understand how this keeps going on and on. And who is responsible? And what is going to happen to those who are responsible for these massive losses? Oh yes, I remember. They all talk about it amongst themselves and then, when all the ordinary people outside in the real world have forgotten about it, it's quietly slipped under a carpet somewhere and completely forgotten.
Can whoever is responsible for spending OUR money PLEASE STOP WASTING IT!!
If you have one pound and spend 21 shillings - unhappiness
All councillors need to be removed unless they have some understanding of economics/accountancy.
It is not possible to live beyond ones means.
Perhaps they could read the above 50 times each night before bedtime.
It might help!