“We’re not where we would like to be” cabinet was told as it discussed Pembrokeshire County Council’s budget position for the first part of the year.

Cabinet member Clr. Bob Kilmister said that at the “end of quarter one” there was a “£3.9million projected overspend” but this did not include any grant funding the council was likely to receive.

“We face a considerable challenge to meet out budget,” said Clr. Kilmister.

Cabinet met on Monday, September 10 with a budget update and corporate risk report on the agenda.

Clr. Kilmister said that some areas of the authority were under “severe pressure” in particular education and its redundancy programme currently “overspent by £832,000.”

Residential care out of the county was also hitting the social services budget hard and its provision is a statutory requirement.

There is currently a £0.734million overspend on shared social services residential out of county care and £0.633 on shared education residential out of county care.

The cabinet heard that when the budget was set there 11 vulnerable children requiring the services that can cost up to £600,000 per child but there were now 15, “including two extremely high cost placements.”

He added that a regional approach was being adopted for the longer term but there was “no scope” to reduce a statutory service in the short term.

Clr. Tessa Hodgson, cabinet member for social services, added that there was also a “moral” duty to provide such services but a “fundamental rethink” on social care funding was needed.

The social care budget is set to rise to £57million next year from around £34million in 2011-12 – an increase of 65 per cent despite cost efficiencies.

Clr. Kilmister said that a 12 per cent increase in requirements was projected last year, along with “huge costs” from national minimum wage creating a “perfect storm.”

“Government inaction on that issue is staggering,” added Clr. Kilmister.

“We cannot continue ti fund these demands and we’re certainly not the only council in the UK in this position.”

A sustainable approach to adult social care funding was needed now across the country “or we are going to have to introduce rationing” he added.

Other services currently overspent “must bring their budgets under control” said Clr. Kilmister.

He also warned that there was a risk to using reserves to bolster revenue budgets and this was a common factor at those councils in England currently facing financial problems.

Five of the 12 corporate risks on the latest register are financial with the medium term financial plan and transformation as well as ‘demand and demograpgics’ increasing in residual risk score to the maximum level.

Other higher risks, although remaining stable, to the authority include loss of key staff, corporate memory and expertise, grant funding and officer/member relations.

One of the risks to decrease recently is the 21st Century Schools Programme band B following a decision on Haverfordwest’s primary schools.