The council says it is addressing the overspend issue

The 2003/2004 council budget, was otherwise balanced, according to a report due before cabinet on 28 July.

The areas of overspend were learning disabilities and children's services. The borough council says it is addressing the issue.

In its annual report last December, the public services watchdog, the Audit Commission, said social services in Swindon had got worse.

The two areas of concern have now overspent for the last three years in a row, "due to the high cost of having to place people in private care homes outside the borough," said the council.

We are very aware of the problems there are in turning around a failing social services department Keith Skerman Director of social services

The council says it restricted the number of children being placed in this way once it became aware of the overspend, and spent more money on community-based activities.

A council spokesman said: "These are two areas that require expensive specialist care.

"People with learning disabilities have more complex needs which cost more and puts pressure on resources.

"The average cost to care for some of these vulnerable people in one of these two areas is �100,000 per year."

Confident resolve

The department has now "taken radical and urgent measures to address management and system problems".

It has appointed two new senior accountants and plans to invest �750,000 in new IT to help "solve problems at an early stage".

Keith Skerman, the director of social services, said: "We are very aware of the problems there are in turning around a failing Social Services Department.

"These figures show how difficult that can be. I am confident, however, that we now have the staff, systems and means to resolve this".