With three months left of the financial year, Powys County Council is predicting a budget surplus of just under £1.4 million at the end of March.

A report for a meeting of the council’s Finance Panel on 20 February saw finance chiefs forecast on 31 December that the authority will spend £366.2m by the end of March.

This year the council’s budget is just over £367m.

At that stage the surplus was predicted to be £839,000 but following movements within the council’s “specific reserve” accounts of £543,000 the surplus figure goes up to £1.382m.

That figure is an improvement on the £800,000 surplus that was being reported in September, but still a long way off the £2.2m surplus that was being predicted by finance chiefs at the end of June last year.

Director of corporate services and s151 officer Jane Thomas said: “The continued underspend position is positive; our projections are supported by the receipt of additional grant funding released during the year by Welsh Government.”

But she concedes the surplus is “minimal.”

Ms Thomas said: “We cannot underestimate the continued rigour needed in budget delivery and the achievement of savings.

“Maintaining financial resilience is predicated on the delivery on a balanced budget, limiting only essential and planned reserve use, robust financial management and realignment of service delivery to remain within budget is essential.

“The Senedd elections add uncertainty to our funding for next and future years.

“A positive budget position for this year and using any opportunities that arise over the latter months of the year will ensure that the council is best placed to manage the challenges ahead.”

To balance the books £16m worth of cuts and efficiencies are needed and this includes £3.7m from past budgets.