Gwynedd Council is forecasting a £2.3 million overspend to meet “continuing and increasing demand” for vital services.

A council report on the November review projects a £2.3 million shortfall.

The report said: “Receipt of a grant from the Welsh Government, a reduction in general capital costs, and a favourable position on a number of corporate budgets are helping to alleviate the overall financial situation for the council.”

At the next meeting, cabinet members will be asked to approve several measures including agreeing to additional financial support above the contractual payment to Cwmni Byw’n Iach, the company that runs the council’s leisure services, to be funded from the transformation fund.

Based on the current review, it is estimated that the value of the support will be £295k.

Cabinet members will also be asked to approve a transfer of £3,365 million of underspend on corporate budgets to the council’s Financial Strategy Support Fund, to be used at the end of the financial year to fund the overspend faced by the departments, and transfer £2.089 million from the Financial Strategy Support Fund to the Council Tax Premium Fund.

The report also notes the council’s position on savings stating “almost £47 million, namely 93% of the amended savings schemes since 2015, have now been realised”.

The document concludes: “A spending position of £2.3 million more than the budget is projected in order to continue to meet the increasing demand for services for the rest of the year, based on the information that we currently have.

“The figure is based on a £6.5 million budget deficit by the departments, with the impact mitigated by a likely £4.2 million underspend on corporate budgets, of which £3.4 million is available to assist with the financial position of the rest of the council”.