Herefordshire can still balance its books this financial year despite ongoing struggles to control costs, the county’s head of finances has claimed.

“Cabinet are fully committed to delivery of savings in full and on time to ensure that the 2023/24 outturn position is balanced, and to prevent further pressure on future years’ budgets,” cabinet member for finance Coun Pete Stoddart told colleagues yesterday.

Yet based on figures for the second quarter of this financial year, up to the end of September, Herefordshire Council’s forecast overspend has increased by £300,000 from the previous forecast to £13.8 million, or 7 per cent of its revenue budget.

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Over 85 per cent of this overspend comes from the council’s troubled children and young people department, which continues to be closely monitored by Ofsted inspectors.

“This reflects the challenging national and global economic environment, increased demand for adult and children’s social care, and the soaring cost of transporting children with special needs to school,” Coun Stoddart said.

Overspend on agency staff alone is expected to hit £3 million, after a “lack of response in the market” to council attempts to recruit more permanent staff to the department, he explained.

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Meanwhile, cost and demand pressures in adult residential, nursing and home care are leading to a £1.6 million overspend there, he added.

Spending and hiring decisions in each council department will now have to be separately approved, with any expenditure over £500 to be passed by department heads – measures intended to save around £3 million.

“Despite these challenges, Herefordshire Council’s financial position remains very stable, our reserves are above average, and we have low levels of borrowing,” Coun Stoddart said.

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Auditors Grant Thornton have signed off the previous year’s Herefordshire Council accounts – making it the first local authority of its kind to achieve this, he added.

Greens group leader Coun Ellie Chowns responded: “It’s good to hear Coun Stoddart say how well organised the council’s finances are – not the message you were putting out six months ago.”

Independents for Herefordshire leader Coun Liz Harvey, the council’s financial head under the previous administration, said: “To see nothing coming though on savings from the children’s directorate – in your place I would be feeling really let down, given the savings opportunities that were presented to us as deliverable.”