Increasing demands and rising costs for complex social care accounts for 90 per cent of Gwynedd Council’s £9.8m projected budget shortfall.

Cabinet members heard that figure is based on a budget deficit of £9.4 million by the departments, and a further £400k on corporate budgets.

Four council departments are over the £100,000 threshold, and expenditure in the fields of children’s extra-county placements, waste, residential and domiciliary care, post-16 care and the Derwen service were predicted above allocated budgets.

Parking and highway income targets were not being met and the council tax yield and council tax premium was below the year’s budget.

Cllr Huw Wyn Jones, Cabinet member for finance, told Cabinet 10 November: “The general picture is we anticipate a deficit of £9.8m for 2026/27.

“Without pointing any fingers 69 per cent is in children’s services which is a significant amount.

“On a political point if you go through the figures, it is more or less all on social care.

“If you ask any politician in Cardiff or London listening to this today, I would ask them to think how can we do this effectively as a country not relying on overspends?”

Cllr Menna Trenholme, deputy leader and Cabinet member for children, was absent from the meeting but sent a message read by council leader Nia Jeffreys.

“It isn’t a matter of over spending but a matter or underfunding and an increase in demand,” she said.

“We see more children in care with more complex needs across Wales, not just Gwynedd. We have a statutory duty to support and safeguard these children.

“For me, the most important thing is that all children are safe and receive the right services at the right time, that is the priority at the root of this expenditure.”

Finance officer Dewi Morgan said some adaptations could be made to try and rectify the situation “but I don’t think we will be able to cover all of that deficit by the end of the financial year, we will probably have to use an element of our reserves”.

Chief executive Dafydd Gibbard added: “One of the statistics used was that 69 per cent of the funding deficit is in the field of children.

“Another statistic to throw in is that 90 per cent of the deficit is in social services, adults and children put together.

“Demand is increasing, the numbers of people needing services is rising and people’s needs are becoming more complex; it all costs more.

“You either do the morally right thing by providing services or refuse.

“In reality you don’t have a choice to refuse, there is a legal duty for you to provide services, you have no choice but to overspend.

“In terms of adults we know demand will increase putting more pressure on you trying to set the budget next year.

“Traditionally we can’t catch up with the demand and funding doesn’t follow at the same pace.

“With children it is more difficult, you won’t be able to anticipate what the increase in expenditure will be facing you in a year’s time.”

He said council tax could rise or services cut to reduce the deficit.