Harrow Council has an overspend of almost £1.7 million just two months into the new cycle, but it insists its finances are in a good place.

The costs of adult services, which contributed an overspend of more than £2.5 million, have caused the greatest concern – something noted by finance portfolio holder Cllr Adam Swersky.

He explained that an increased demand in terms of care, as well as an overall increase to the cost of care, has led to the situation.

“There is pressure on adult services,” he said. “We have invested significantly but then we look at the demand coming through and it looks like it will be more than we projected.”

The council has set up a corporate strategy to deal with the issue, making note of the successes in children’s services, which was in a similar situation, last year.

This department, which benefitted from almost £3 million in the latest budget to cope with the increase of young people and families needing support, is expected to be balanced at this stage.

In terms of savings, three-quarters of the £9 million approved in February’s budget are on track and a further 15 per cent are partially achieved.

There are nearly £950,000 worth of savings that are considered ‘high risk’ and the report noted that these are being mitigated by “reductions in other budgets across the directorate”.

This includes a £58,000 for special responsibilities allowance for councillors, though the size of the cabinet will not be reduced.

Cllr Graham Henson, leader of Harrow Council, said the initial financial report shows the difficulties faced by local authorities around the country.

He said: “The rising costs and the reduce in income means that we must continue to spend our money wisely.”