CORNWALL Council is set to miss its savings target by more than £13million and is also almost £400m in debt.
The figures have been revealed in a report due to go before the council’s Cabinet this morning.
Last year the council set itself a target of saving £40.6m in 2013/14 but current projections show that it is only likely to deliver savings of £27.4m.
Added to which the council’s finance officers state that a £10m contingency fund established last year has already been accounted for.
A large part of the shortfall in savings is due to the council’s adult social care department failing to meet its own targets.
For 2013/14 the department was expected to deliver savings of £18.5m but, based on figures compiled in December, is expected to only reach £9.7m.
Further details of the council’s budget also show that the adult social care department is set to overspend this financial year by £11m. However the impact of this will be reduced with the council set to use £5.45m from its contingency to plug the gap.
Other departments which are set to miss their savings targets include children , schools and families which has missed by £1.6m due to delays to a review of its transport service.
The environment department has missed its target by £1.1m which is attributed in part to the delay in passing public toilets to town and parish councils.
And the corporate items department is set to come in £1.2m below its target due to a shortfall in expected profits at Cormac.
The report – which was set to go before the council’s Cabinet yesterday – also details the council’s current borrowing.
In total the council’s current debt stands at £801m which consists of £632m in long term loans and £169m short term.
However the council also currently has £402m in investments so its net debt is currently £399m.
Alex Folkes, Cornwall Council Cabinet member for finance and resources, said: “Most departments are on course to meet their budgets or even coming in under budget, but there have been significant pressures on adult care and a transport project which we originally had thought would deliver this year but has been delayed. We are aware of the on-going issue in adult care and will be working hard on it over the course of the next two years.
“Alternative savings have been found to replace these planned savings and the overall position at the moment is a projected overspend at the end of the year of just below £1m. We are confident that there is further action that we can take to ensure that the budget will balance by the year end.
“The net debt position is pretty standard for an authority of our size. Our treasury management policy, agreed by full council each year and reported back to them on a regular basis, is to borrow to finance investment and capital projects. With interest rates comparatively low, this makes financial sense.”