A warning has been issued that “difficult decisions lie ahead” for Gwynedd Council amid a projected £8.3 million overspend.

Rising costs, demand for services and pressures on budgets has seen the council report “significant” overspends in five departments.

Eighty-three per cent of the £8.3m relates to costs in the adult and children care field, a Cabinet meeting on 21 January heard, when it was agreed to support steps put forward by Chief Executive Dafydd Gibbard to address the overspends.

They affect departments for adults, health and well-being, children and families, highways, engineering and YGC and environment.

Cllr Huw Wyn Jones, finance cabinet member, said in the adults department a £3.3 million overspend was expected compared with £3.9m in 2023/24.

A “combination” of factors were behind the overspend, including an increase in pressures on domiciliary care provision, higher staffing costs, sickness levels and “high rates of non-contact hours within the internal provision,” he said.

Other issues included direct payments overspending by £1.5m in the older people service, and supported accommodation in the learning disabilities service.

The children and families overspend had “worsened substantially” increasing to £3.7m from £2.6m, mainly due to increased out-of-county placement costs.

The department had also seen the “complexity” of packages increasing, and more use of unregistered placements.

In education, an additional budget allocation had been received of £896k on a permanent basis, and a further £896k for one year, to address pressure on school buses and taxis following re-tendering of contracts.

“A combination of grant receipts and cutting back on spending meant an underspend is anticipated by the department,” Cllr Jones said.

Byw’n Iach income levels, which provides leisure services, were disrupted by Covid, so they received annual financial support from the council of £550k in 2022/23 and £308k in 2023/24 – above the contractual payment of the delivery contract. The required sum was now £201k.

Highways, engineering and YGC was expected to have an overspend of £699k, the environment department £970k, and waste collection and recycling £667k.

In housing and property, despite “significant pressure” on emergency accommodation services, it was expected to underspend by £303k.

Corporate also reported an underspend.

Chief executive Gibbard said: “The report sets the context for the decisions we have to make in the coming weeks, and setting the council tax.

“The issues our departments face go far beyond any emergency measures that can be put in place.

“We use the term overspend every year – we should erase that term – it gives the impression it is spending out of control, but that’s not the case, what it means is there is not enough money in the budget due to increasing demand for services and increasing costs.

“Departments only have two choices, to overspend or to cut services.

“Stopping services is just not an option….these are extremely difficult decisions.”

Cabinet also formerly agreed to delegate the right to make the required budget transfers to “reflect the current pressures”, and to approve the additional financial support to Byw’n Iach.