Budget deficit over £300K forecast for Merthyr school transport services

A budget deficit of more than £300,000 is being forecast for Merthyr Tydfil’s mainstream school transport service, mainly due to extra costs associated with the A465 works.

A report to the council’s cabinet shows a deficit of £308,000 is projected for the mainstream school transport budget for 2023-24.

It said the planned bridge opening on the A465 has been delayed, plus a walking route has been deemed unsafe as a result of the works. Estimated additional unbudgeted costs for the project are £151,000.

New contracts for additional pupils and diversion costs due to a landslide in Pontsticill total £169,000.

Additional costs have been offset by an unbudgeted additional public holiday and a terminated contract of £31,000.

As at February 29, a total net revenue surplus of £889,000 is projected for the council for 2023-24. The equivalent figure at month nine was a surplus of £108,000.

It is mainly due to a projected underspend in social services of £1,595,000, which is a change since month nine when the projection was £957,000.

The education department is projected to overspend by £1,001,000, and the economy and public protection department is projected to overspend by
£37,000.

A surplus of £61,000 is projected for the old bus station, a deficit of £135,000 is projected for St Tydfil’s Shopping Centre and a deficit of £141,000 is projected against office accommodation.

The neighbourhood services department is projected to underspend by £80,000 and the governance and resources department is projected to overspend by £119,000.

A deficit of £176,000 is projected against the Peace of Mind service.

Corporate costs are projected to be underspent by £474,000.

A budget surplus of £418,000 is projected against capital financing costs, a budget deficit of £120,000 is projected against external legal fees and the “corporate other” budget is projected to underspend by £143,000.