A REPORT by the Wales Audit Office has said Blaenau Gwent council has made “encouraging progress” after it was warned in 2013 it needed to cut overspending and its use of financial reserves.

The council faces another tough year after it announced in December last year a target-saving proposal of over £6 million for 2015-16 following cuts from Westminster passed on to the Welsh Government and local authorities.

The £6.1 million saving proposals follow the 2014-15 financial year when the council was forced to find total savings of £10 million.

A Financial Position Assessment report issued in February by the Wales Audit Office found Blaenau Gwent council has made progress following statutory recommendations by the Auditor General for Wales in 2013.

But the report also said the council “will need to ensure these arrangements become fully embedded and deliver intended outcomes”.

The report, which was put to the council’s audit committee this week, said the local authority’s track record prior to 2013 suggests “it was not able to operate within its budget, with some key services overspending and budgets being balanced through the use of reserves”.

The report added: “The council has introduced plans and arrangements to deliver significant savings in 2014-15 and beyond, and it will need to continue to review and evaluate the effectiveness of these arrangements if it is to deliver its strategic priorities and be financially sustainable.”

The WAO compiled the report after analysing data produced by the authority from published accounts, performance returns to the Welsh Government and the Local Government Data Unit. It also held interviews with a small number of key staff.