Monmouthshire County Council is facing a ‘concerning’ budget deficit of £2.4m for the year ahead, with one of the main contributors a spike in the number of children coming into care.

After receiving the latest financial forecast at a recent cabinet meeting, senior councillors and officers are now reviewing where to find savings to set a balanced budget by the end of March 2020.

Cllr Phil Murphy, cabinet member for resources, said the authority has “an evolving recovery plan” to bring down the deficit by the end of the year.

“This out-turn position is a significant deficit and as such the senior leadership team are considering their actions to resolve that situation,” he said.

A report identifies key pressures including a predicted overspend of £2.069m within the council’s children’s services department.

Since November, 2018, there has been a 20 per cent increase in the number of looked after children, increasing from 148 to 178 at the end of May this year.

Six children have entered the authority’s care in this financial year, including four in May which required external placements.

The council’s MonLife department, covering tourism, leisure, culture and youth services, is facing a £260,000 overspend, while the Additional Learning Needs budget is £617,995 over.

Car parking and passenger transport service areas are also forecast to be over budget.

Cllr Murphy said the early budget forecast “usually” predicts a potential overspend, which then allows council officers to tackle the deficit.

Savings of £960,000 have already been identified to bring the forecast overspend down to £2.4m.

The county council is also seeking advice over whether it can make a “significant one-off reclaim of VAT” which could make a “significant difference” to the budget position.

Council leader, Peter Fox, called the predicted deficits “concerning.”

The council’s scrutiny committees will now consider the financial forecast over the coming weeks.