Lower pay rise helps balance council's books (From Tivyside Advertiser)

Lower pay rise helps balance council's books

11:10am Wednesday 2nd December 2009

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A LOWER than expected pay rise for employees is helping Ceredigion County Council balance its books for the current financial year.

A pay award of 1 per cent for APT&C (Administrative, Professional, Technical and Clerical) workers resulted in savings of £674,500 for the authority.

Finance director Gwyn Jones told members of the county’s Cabinet this week that the savings resulted form the pay award being agreed at less than the budgeted figure of 2.5per cent.

In a report on revenue expenditure FOR 2009/10, he stated: "This will be utilised to meet the overall shortfall of £600,000 that was funded from Genral Balances when the budget was originally approved."

Overall, the finance department predicts an overspend across the authority of £263,000 in the year to March 2010.

Cabinet member with responsibility for finance, Cllr Peter Davies, said: "It is a satisfactory position, considering current circumstances."

The £263k deficit results mainly from an income shortfall from service users in residential and nursing homes and from a reduction in planning fees.

Social services director Parry Davies said there are currently 60 empty spaces in care homes in the county, which has caused the loss of income.

"We don’t know if this is a blip or a trend yet," he said.

Council leader, Cllr Keith Evans said it might result from a desire by people to stay in their own homes as long as possible.

Chairman of the social services scrutiny committee, CllrLyndon Lloyd called for more money to be put into home care services. "We need to put pressure on the Welsh Assembly and on Westminster government to make sure we get the money we need to deliver care to people in their own homes," he said.

The overspend in the environmental services budget is mainly due to a projected shortfall of £200,000 in income from planning application fees.

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