Hertfordshire County Council heading for £3.39 million overspend
PUBLISHED: 12:02 15 February 2020
Hertfordshire County Council's projected overspend for 2019/20 has decreased to £3.39million, according to new data.
At the end of the first three months of the financial year there had been fears the council was going to overspend by £6.87 million in 2019/20.
But the latest figures - updated at the end of December - now suggest the projected overspend has decreased.
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The figures were presented to a meeting of the council's resources and performance cabinet panel on Wednesday, February 12.
Councillors were told that this level of overspend could be funded from the council's contingency budget - without the need to take from reserves.
The overspend is said to be largely as a result of the increase in the number of 'looked after' children who are being placed in more costly 'independent' placements.
Based on the latest figures from the end of December 2019, the overspend on independent placements in expected to reach £5.37 million.
According to the report the current average cost of a placement in an independent residential home is around £240,000 a year.