Pembrokeshire County Council has got through a challenging financial year with its budget intact and hitting its financial targets, cabinet heard today (Monday). However 21st Century Schools funding and adult social care were flagged up as significant financial challenges for the year to come.

Presenting the council’s outturn monitoring report for the last financial year chief finance officer, Jon Haswell, told cabinet that there had been a revenue underspend and that money had been added to the council’s reserves.

“We had an extremely productive fourth quarter in terms of stringent budget management. That means there has been a revenue underspend.” he said. “It’s a very good position for the council.”

He added that because of the stringent budget management and a “surplus” of council tax the authority had been able to add to its reserves but warned they would be needed in the years to come.

“The challenges we’ve got coming over the next four years of the medium term financial plan we will need every penny to assist us for invest to save projects and service reconfiguration,” he said. “While there is now over £8 million that sounds like a lot of money. It’s not in the scale of the challenge we’ve got.”

Council leader Jamie Adams warned that the decision made on Haverfordwest school reconfiguration by full council will have ramifications for this year’s budget.

“Inevitably there will be a challenge in terms of 21st century schools in the current financial year recognising the decision of council some ten days ago,” he warned.

Mr Haswell also flagged up making savings in adult social care as a “significant challenge” for the coming year.

“Our biggest challenge was in social care for adults,” he said. “That’s going to be an equal challenge this year. It was a challenge last year at £2 million and this year it’s more like £5 million. It will be a significant challenge in that area.”

Cabinet voted unanimously to receive the outturn monitoring report.