Gwynedd Council departments are expected to overspend their collective budgets by almost £5m, finance chiefs have warned.

Cabinet heard ongoing pressures were forecast to result in an overspend of £4.7m from the allocated £221m budget for 2020/21.

While extra Welsh Government cash is expected to fill most of the gap, the report partially blamed departments failing to meet previously set savings targets, with Covid-19 said to have had a “significant impact”.

Despite more funding this year the adults service is expected to overspend by £3.3m –– £1.8m was a result of failing to achieve “increasingly difficult” savings schemes.

Other factors include increased demand for domiciliary care packages, pressure on residential and nursing care provision and an overspend on supported accommodation

Children’s services, meanwhile, has a projected overspend of £2.5m, exacerbated by growing demand and eight new out-of-county placements.

Waste collection and disposal is expected to be largely responsible for tipping highways and municipal £646,000 into the red if forecasts are realised, partially due to delays implementing new shift patterns and collection arrangements, extra costs, less income due to Covid-19 and a drop in income for sold recycled materials.

Head of finance, Dafydd L Edwards, suggested the £4.7m figure may be “overstated” due to the authority expecting “at least” another £3m from the Welsh Government’s Covid-19 hardship fund, with an extra £1.3m also set to be recouped thanks to an underspend in the council’s own corporate budgets.

Chief Executive, Dilwyn Williams paid tribute to the “financial prudence” of the authority over many years for setting a “firm foundation” by maintaining heathy reserves – standing at approximately £7.6m.

Environmental portfolio holder, Cllr Gareth Griffith – whose department faces a £369,000 overspend – said Covid had “hit them hard”.

Deputy leader, Cllr Dafydd Meurig, who holds the adults services portfolio, said the current situation was challenging, but blaming Covid alone “would not be an accurate picture”.

He added: “It’s been difficult for several years due to not enough money and rising demand.

“These are not excuses but simply the result of 10 years of austerity, and I feel we have reached the end of what it’s possible to achieve in terms of savings.

“We have been cut to the bone but when the people of Gwynedd are in need we simply must meet their needs.”

Cllr Dilwyn Morgan, who leads on children’s services, said the growing costs of placing cared for children in specialist placements was “not a problem unique to Gwynedd”, but conceded year on year overspends were putting pressure on finances.

Cllr Catrin Wager, holding the highways and municipal portfolio, said the department had borne several cuts but was one that was visible and serving every home in the county.

She added: “I suggest some work is needed to establish the true cost of the service compared to the finance available as cuts have not helped in terms of delivering a service.”