Derbyshire County Council reports £2 million budget underspend

Derbyshire County Council has ended the financial year more than £2 million better off than expected after introducing tighter spending controls across its services.

A report presented to the council's Cabinet this week revealed a £2.009 million net underspend for 2025/26, a significant improvement on earlier forecasts which predicted a £0.5 million overspend. 

The council said the stronger-than-expected financial position was achieved through careful monitoring of budgets, tight controls on spending, holding some staff vacancies open, generating additional income in some services and delivering further savings across corporate budgets. 

Despite the overall positive position, the report highlights continued financial pressures in key frontline services. Children's Services and Adult Social Care and Health both recorded significant overspends because of increasing demand and rising costs, although these were offset by underspends elsewhere within the council. 

The council also confirmed it had achieved £35 million of savings during the year, against a target of £37 million, with departments reducing spending to help bridge the gap. 

As a result of the improved financial position, Derbyshire County Council's general reserve now stands at £36 million, in line with its revised reserves policy aimed at ensuring long-term financial stability. 

Councillor John Lawson, Cabinet Member for Finance and Efficiency, praised staff across the authority for their efforts: 

“This is a tremendous achievement involving all teams at all levels across the council and it is satisfying to see that we are leading a well-run, prudent council which is delivering vital services to our residents while cutting out waste and ensuring efficiency is at the core of all that we do. 

“The forecast position improved greatly in the last three months of the financial year and this is down to hard work, careful planning and scrutinising every pound spent. 

“Although cost and demand pressures remain, especially in our adults and children’s services, this achievement means we have started the new financial year positively, knowing that we have the right mechanisms in place to ensure effective financial control. 

“We owe it to the council tax payers of Derbyshire to ensure we keep balancing the books while providing quality services to our residents who rely on them. This report demonstrates that we achieved what we set out to achieve last year. However we are not resting on our laurels and will continue to strive for improvements at the same time as minimising spend wherever possible.”