BRADFORD Council financial chiefs are forecasting the authority will overspend by £10.5 million by the end of the financial year, latest estimates show.

But Council leader Susan Hinchcliffe told members of the executive she was determined to ensure the budget was brought back in line with the approved £375.2m in running costs for the year.

Finance bosses told executive members that it was important to make it clear that the estimate was based on information gathered at a “very early point in the financial year”.

The report to members also outlined how there were risks to a number of the planned savings of £37.5m which are instrumental in the 2017/18 budget.

In fact the forecast highlights that £16.3m of these savings may not be delivered as intended and in addition savings from earlier budgets are also predicted to be £8.5m down on where they need to be.

As a result it is predicted that overall £24.8m of savings will not be delivered as planned.

Just over £5m in capital expenditure was agreed at the meeting, including official confirmation of £3m to cover the increased costs in the refurbishment of St George’s Hall.

Labour’s Councillor Hinchcliffe said: “This time last year we had a £6m projected overspend and now we have a figure of £10.5m.

“That’s a challenge for us as a Council.”

She added: “We need to make sure that we don’t end the year with a £10.5m deficit so we have to take action.”

She asked for a meeting with officers to look at ways to ensure the budget is kept under control as much as possible.

“We are doing our bit at a local level - we need Government to do its bit so that the quality local services we deliver are funded properly.

“To expect council tax payers to fund all adult and children’s social care is unacceptable.”

The main pressure on this year’s budget is the Better Health Better Lives outcome in the Council Plan where a £15.1m overspend is predicted. This reflects the growing pressure on social care for both adults and children.

Other pressures include £2.2m for purchased placements within children’s services, as well as £0.9m on fees for children in care and children receiving support.

In addition health and well being has a new pressure of £3.3m linked to increasing fees payable to care providers.

The predicated shortfall in savings and other forecast overspends are being partly offset by the £8.5m for adult social care that was provided by the Government after the budget was set, as well as the use of a contingency fund to offset the £4.8m that is not expected to be saved on travel assistance.

In addition to the first quarter financial report which was discussed at today’s executive meeting in City Hall, councillors also received details of the annual financial and performance report.

The Council was able to balance its books in 2016/17 coming in under its £378m budget by £0.3m, which was in line with previous forecasts.

Despite the underspend overall, there a were a number of differing results within individual departments.

Children’s services overspent by £3.5m last year, with an increase in the number of children in care resulting in a £1.9m overspend on the cost of purchased placements and a £1.3m overspend on fees and allowances.

This had a knock on effect on planned savings around reducing the number of children in care.

The Department of Health and Wellbeing overspent by £2.9m caused mainly by a £3.7m overspend within adult services, mainly on purchased care.

Any overspend on adults and children’s social care was linked to high demand, the report said.

Cllr Hinchcliffe added: “This time last year we had a £6m overspend and to reach the end of the year on budget is something I thank officers for. There is a lot of effort that went into achieving this.”

She continued by saying they were looking to do everything they could for the people of the district, but this was within a “tighter financial envelope”.

Cllr Val Slater, who is responsible for health and wellbeing, added that the report demonstrated the complexities of delivering social care services.

“While the climate and context is extremely challenging, we are doing a very good job to protected vulnerable people in Bradford,” she said.