Council report budget is on track despite social care pressures

Derbyshire County Council has published a report on its budget position for the first three months of the 2025–2026 financial year.

The report, which will be considered by Cabinet today (Thursday 11 September), forecasts a net overspend of £1.3 million for the year.

This marks a significant improvement compared with recent years. At the same point two years ago, the council was forecasting a £46.4 million overspend, while last year the figure stood at just over £20 million. The much-reduced forecast for 2025–2026 reflects wide-scale efficiencies and a savings programme across all areas of spending.

The council reports saving around £29 million during 2024–2025, with £18.9 million of those savings carrying forward into 2025–2026. In addition, £18.6 million of new savings were identified as part of the budget approved in February. Combined, these measures mean the council is forecasting total savings of £37.5 million during 2025–2026.

Despite the improved position, the report highlights continued financial pressure on children’s social care. By the end of the year, an overspend of £25.9 million is forecast for this area alone. However, this is largely offset by a forecast underspend of £23.2 million across corporate budgets, along with other smaller variances, leading to the relatively modest overall forecast overspend of £1.3 million.

The council notes that inflationary and demand pressures continue to affect both children’s and adult social care services.

Council Leader Councillor Alan Graves said: 

“The people of Derbyshire elected us for many reasons, one such reason was to ensure this council is as efficient as it can be and that every pound is accounted for and spent wisely: our top priority. 

“We are scrutinising all our services to ensure they give value for money and are delivering for our residents, as well as making sure there is no wasteful spending on any projects or schemes, although we recognise there is a long way to go. 

“We’ve also made some changes to the strategic objectives in the Council Plan to better reflect the direction of the council, and we’re planning to make more next year which we believe will benefit more residents and communities and better target our resources.” 

Cabinet Member for Council Efficiency (DOGE), Councillor John Lawson, added: 

“Our hard work continues to ensure the savings already identified stay on track, and we are looking across the council to identify where further savings and efficiencies can be made. 

“The challenges faced in previous years, especially around social care costs and demand pressures, continue, so we are not out of the woods by any means. However, we are committed to ensuring we can continue to set a balanced budget over the medium-term, ensuring good financial management and a sustainable use of reserves, while continuing to deliver quality services to our residents.” 

Alongside the budget details, today’s report also reviews performance against the Council Plan 2025–2029 outcomes. Several changes are being proposed to reflect the new administration’s priorities, including:

• updates to the climate change objective to focus on energy security, energy efficiency and clean energy

• revisions relating to the East Midlands Combined County Authority (EMCCA) to reflect current activity

• a review of strategic highways policy, alongside work to maintain a safe and serviceable road network

• measures to further increase transformation and efficiency

• revisions relating to Local Government Reorganisation, reflecting the council’s preferred option of two unitary authorities.

Progress against the 24 strategic objectives shows that 19 (79%) have made good progress, four (17%) need review and one requires action.

Key achievements highlighted include improvements to the placement of children in care, the creation of a dedicated multi-agency SEND quality assurance group, the planting of 47,000 trees as part of Derbyshire’s Heartwood Community Forest, public health work to reduce health inequalities, and the delivery of more than 2,500 Live Life Better Derbyshire Health and Wellbeing MOTs.

Looking ahead, particular focus will be given to priority areas such as managing ongoing pressures on SEND assessment and continuing work to improve Derbyshire’s roads.