FRONTLINE services at Carmarthenshire Council, including schools, are forecast to overspend by £16.9 million in 2024-25.

The figure is based on data at the end of December and the final amount is likely to change by the end of the financial year on March 31. The main driver for the overspend is schools spending more than they should.

However, departmental overspending has come down from earlier in the year, and the council has received some additional funding from the Welsh Government to cover things like staff pay rises. The authority will also use money held in reserve to reduce the deficit further.

The upshot, according to a report before cabinet, is that the council is forecast to be £5.3 million in the red by the close of 2024-25. While still a lot, it’s much less than had been forecast earlier in the year.

“This is a significant step in the right direction but remains a very concerning picture,” said Cllr Alun Lenny, cabinet member for resources.

Not all schools are overspending but a large majority are, by nearly £10.3 million across the board. One silver lining is that many schools were in credit at the start of 2024-25, and this collective surplus of nearly £5.2 million will be carried over into 2025-26.

The picture varies from school to school. One secondary is forecast to end 2024-25 with a £1.8 million deficit, which Cllr Lenny described as “totally unsustainable”. In contrast another secondary school is forecast to have a year-end surplus of nearly £1.6 million.

Cllr Lenny said urgent work was being done with over-spending schools to get to the root causes and offer support, while the cabinet report said quicker progress “rationalising the schools’ footprint” was also needed.

Another area of overspend is children’s services, mainly driven by an increase in the number of young people in expensive residential placements. The council is also having to pay more for school transport and waste collection than had been budgeted for.

Pounds and pennies are being saved in several areas, often due to vacant posts being kept vacant.

Cllrs Glynog Davies and Darren Price welcomed the additional funding from the Welsh Government but said it wasn’t enough to cover the shortfalls affecting the council.