FINANCE chiefs have revealed Herefordshire Council has overspent more than £1.42m so far on their current budget.

Officers said the first quarter forecast revenue overspend is due to extra residential placements of adults with learning disabilities and a net increase of looked after children.

The cost is also rising due to a lack of placement options.

Finance cabinet member Nigel Shaw said it reflected a national trend of increasing pressure on local authority budgets.

“The forecast year end budget position as of the end of June will be an overspend of 1.422m,” he said.

“This is mainly due to additional residential placements.

“We’ve all seen the financial reporting from authorities across the nation of varying political persuasions.

“Including a close neighbour who has now announced a total review of the shape and size of their council and the services they provide.”

Councillor Shaw explained, however, the council’s position was probably in the best position in terms of year on year performance according to external finance managers.

“I fully appreciate that there are ongoing austerity issues, but the balance sheet is very robust indeed,” he added.

“As an authority, all councillors and all citizens of Herefordshire can take some comfort in a professional who is making that kind of statement.

“That is not to say that the position cannot change and I take this opportunity to reiterate that the uncertainty facing council funding after 2020 has never been greater.”

Chris Baird, children and families director, explained the financial pressures were both a national and local issue.

“For some time now we have been reporting that we have a traditionally high number anyway,” he said.

“That’s were we start from and we’ve had further increases.

“The cost of care is increasing as well.

“And the options we have to meet the needs are limited.

“There are some significant pressures in the increase in numbers and the cost of these placements.”