South Wales Evening Post - 13 October 2006
Swansea Council leaders have shrugged off a projected overspend of almost £3 million.
Just three months into this year's spending plan, department heads have been told that spending will have to be cut in order to prevent the council going over budget by £2.9 million.
Six departments are forecast to go over budget, but council chiefs have denied it will lead to staff or service cuts.
Councillor John Newbury, head of finance at Swansea Council, said the fact the overspend had been uncovered was a good sign.
"We are continuing to make improvements to the way we manage the council's finances," said Councillor Newbury.
"Any potential issues are quickly flagged up and discussed so that there are no nasty surprises.
"Spending forecasts in June estimated that there could be a £2.9 million overspend by the end of the year.
"It is important to recognise this is only a forecast, and the information is vital.
"It means we are now in a strong position to take necessary steps during the coming months to ensure this forecast does not materialise."
The council's education department is facing an overspend of more than £2 million. The chief executive's office has a predicted overspend of £529,000, including £115,000 on legal services.
The council could not give specifics about how spending would be reduced, but a spokesman said department heads had been told to "tighten their belts".
This means reducing spending on services that are not used by the public. It could also mean leaving departments short-staffed by leaving vacancies open.
Despite the £3 million shortfall, which is just under one per cent of the council's annual £330 million budget, Councillor Newbury believes taxpayers should welcome the news.
He said: "This proves that our financial management systems are robust. Last year we saved more than £8 million, which has been invested for the future.
"Our improving financial management should give the people of Swansea greater confidence that taxpayers' money is being properly managed by the council and public services are being protected."
Council leaders announced £5 million worth of service cuts when the budget was first revealed in March this year.
Opposition leader Councillor David Phillips said: "Councillor Newbury has shown his usual understanding of finances by claiming that a £3 million overspend is good news, and a demonstration of proper financial management."
Resident Phillip Towers, aged 41, of Manselton, said: "This might only be small change to them, but for ordinary taxpayers it's a huge amount. Council tax went up last year, and if they can't balance the books we'll all be paying more next year."
Your Views
I am told that Swansea Council is already maxed out on borrowing and is having to make cuts. Now we find that they cany control day to day spending either. If I ran my business in the same reckless fashion then I would be closing up in a matter of weeks. People like John Newbury have absolutely no prior experience of running a large organisation.
Janice, Brynmil
Let's be absolutely clear about this. The overspend, and its a lot more than what we're being told, is ENTIRELY down to the huge costs for Service@Swansea. As we have already seen, things are not going to get any better as "savings" prove to be illusory. It will be us mugs who end up paying higher council tax for less services again!
Martin, Swansea
Councillor Newbury is the Head of Finance so it's incredible that he uses the term 'uncovered' as it's his job to ensure the SCC is within budget. He should of flagged it when they went £1.00 over.
Paul M, Swansea City
I'm absolutely gobsmacked by Mr Newbury's comments that this overspend should be seen as a good thing. I really think our Councillors have lost all sense of reality. So far since they have been in power they have cut services, with more on the way including the collection of rubbish fortnightly, and put up taxes. Bring back Labour and i never thought i'd say that.
David Stein, Derlwyn
