ARGYLL and Bute has already overspent its budget by £3.6 million in the first five months of the financial year – and expects the year overspend to top £4m.

A report has revealed that the majority of the predicted figure is down to a £1.4m forecast overspend for residential placements in social work.

Almost £1m is also expected to be overspent on roads and infrastructure services, including school transport and ferry repairs.

The figures have been revealed days after the council issued a statement saying that it faced a £14.5m budget gap in the 2025/26 financial year.

A report on the authority’s current financial outlook will be considered by its policy and resources committee on Thursday, October 10.

Executive director Kirsty Flanagan said: “There is a year to date overspend of £3.622m. More focus is on the forecast outturn position, hence why sometimes the year to date position is not updated.

“The year to date variances mainly relate to the timing of income and expenditure and recharging of costs to capital.

“There is a forecast overspend of £4.096m as at the end of August 2024. Within social work, there is a forecast overspend of £1.470m relating to demand for residential placements within children and families and older people’s services.

“Within executive director Kirsty Flanagan, there is a forecast overspend of £0.958m due to increased bus contract renewals for public and pupil transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of additional support needs pupils, temporary accommodation and two unrealised savings for additional income from traffic regulation orders and stadiums.

“These overspends are partially offset with additional income in waste, reduction in landfill tax costs due to reduced tonnage levels in Helensburgh waste disposal, and vacancy savings across the department.

“The weather incident of October 2023 has resulted in a pressure from a revenue perspective of £3.567m as reported to the policy and resources committee on August 15.

“Members agreed to how to fund this overspend in its entirety including £0.780m from Crown Estates funding, however as the 2024/25 funding has not yet been confirmed there remains a variance reported at this stage of £0.780m.”

Ms Flanagan added: “Within executive director Douglas Hendry, there is a forecast overspend of £0.693m relating to school residential budget having a higher demand for placements than budget allows.

“Within central budgets, an overspend of £0.271m is reported in relation to the inflation on insurance being higher than estimated.

“There is also an overspend of £0.252m recognised in respect of the pay awards for 2024/25 currently in negotiation as the Scottish Government requires councils to fund 3.2 per cent while the budget only has three per cent built in.”