THE increasing cost of children's services and homelessness have added to a projected budget overspend by Thurrock Council of £3.1 million in the first three months of the current financial year.

The quarter one forecast for the beleagured and near bankrupt authority's General Fund for 2024/25 is a £2.1 million overspend, and a note to the accounts says a "total service position net projected overspend of £3.1million" cabinet has happened.

The council is battling to overcome a legacy of debts which left it bankrupt and at one point owing £1.5billion thanks to reckless investments in energy farms which brought the council to its knees in 2022, prompting government intervention and a team of commissioners to oversee the authority.

Speaking at a cabinet meeting last night (Wednesday 11 September), Sara Muldowney, councillor responsible for resources, said: "The overall position is showing significant pressures in Place with increasing demand for homelessness support and the children's services budget.

"Costs must be brought back within budget and work continues in each directorate to manage what are, in the main, national budget pressures being felt by every local authority."

Cllr Muldowney said action was being taken to "manage pressures", adding: "For pressures associated with the homelessness crisis the place directorate will be using £965,000 from the covid contain outbreak management fund to partly offset the £1.9million homelessness overspend. This is a legitimate use of the funding which, if unused, will have to be paid back.

"Children's services faces challenges with rising placement cost, numbers costs and complexity of cases. To support this the directorate is working to review these cases and manage costs."

Cllr Muldowney added: "In adult social care we are currently underspending. However, as we know the winter period could bring additional pressures, particularly around complex placements and hospital discharges."

In July the authority said it will need £206.7 million from the Government to balance its 2023/24 budget.

That reflected the projected full year overspend which the council originally estimated it would be £180.2m. The project now stands at £26.5m more than this.