DEVON County Council is predicting it will overspend by nearly £8 million this year as government grant cuts and spending pressures in key services combine.

Two key departments – adult social care and children’s services – look likely to make up the bulk of the predicted £7.8 million overspend for this year.

Devon County Council’s cabinet heard that children’s services had overspent by just over £6 million so far, while adult social care had a more than £2.6 million overspend at the half-way point in the financial year.

Savings in other areas help bring the total down slightly, although the council highlighted the loss of a £10 million government grant was also taking its toll.

Westminster removed the rural services delivery grant from Devon this year, funding which was given to the county in recognition of the higher costs of providing services in the rural county.

Councillor James Buczkowski (Liberal Democrat, Cullompton and Bradninch) said it was an “important time to take stock”.

“The headline figure must be treated seriously but it is a £2.3 million net improvement from recent months, which reflects the discipline of our teams with their tighter controls and management of demand,” he said.

He acknowledged adult social care was a sector that faced “huge national pressures” and that this meant Devon was not alone in challenges here.

Concerningly though, Cllr Buczkowski said the overspend linked to special educational needs and disabilities (SEND) was expected to be £57.4 million, which would take its cumulative deficit to around £167.5 million.

That’s in spite of Devon receiving a £95 million bailout through the government’s Safety Valve scheme last year, albeit the cash is paid out in tranches over eight years.

Special government rules mean that this overspend is essentially ring-fenced, meaning it does not have an impact on the council’s day-to-day finances.