Pembrokeshire’s National Park is expected to have a far better financial situation than previously feared, with a current underspend of nearly £600,000, and an expected balanced budget at the end of the financial year.

At the November meeting of the Pembrokeshire Coast National Park Authority’s Audit & Corporate Services Review Committee, a report for members said, as of September 30, the half-way mark in the financial year, the authority’s revenue position showed a net surplus of £563,000 against an expected budget deficit of £371,000; £934,000 better than expected.

It said the overall income generated by the park is £577,00 higher than budget, with trading income £232,000 over budget, through higher centre admission fees (£86,000), café sales (£23,000) and car park income (£139,000).

“The good summer weather and increased admission prices has contributed to this result,” it said.

Other financial boosts include a one-off sum of £113,000 received as compensation for increased national insurance costs, £165,000 received for capital expenditure, a payment for the National Designated landscapes Scheme received in advance, and increased merchandising sales making an additional £68,000 of profit.

It said costs overall are £404,000 under budget, but the capital programme for the year has increased from the original budget of £1,675,000 to a revised budget of £1,979,000 due the inclusion of Phase 2 of the Traeth Mawr/Newport Sands redevelopment.

It says that, at the end of the financial year, the position is forecast to be even better, with a £591,000 surplus.

“However, this assumes there is no catch-up of underspends by departments,” the report says, adding: “If we do spend in accordance to budget, then we will continue to expect a net deficit which will be met out of earmarked reserves.

“The most realistic scenario is a balanced budget for the year buffered by the additional revenue funding of £1.4m received from Welsh Government in the prior year, carried forward as an EMR and used to balance the budget.

“No deficit is therefore forecast for 25-26. Note this is estimated, before the impact of pension reserve movements and depreciation adjustments. This forecast assumes income targets are achieved and costs remain under control.”

Speaking at the meeting, Chief Executive Tegryn Jones said: “From a medium to long term the financial situation is very bleak, however it’s been a fairly positive year for us.”

He said a two per cent increase in the settlement from Welsh Government was predicted for next year, equating to a £0.75m pressure.

Members agreed to note the report as well as noting and approving the movement in earmarked reserves and increased capital budget to date.