In January we announced a number of budget savings proposals to manage a funding gap of around £40 million for the current year, 2024 to 2025.
Plans to take forward the budget savings proposals were agreed in February, leading to us being able to set a balanced budget for 2024 to 2025.
A number of the proposals have now been out to public consultation and either agreed or are awaiting final decisions, with savings being made across a number of our services. Many of the savings proposals are still in the planning or consultation stage.
Our Cabinet will consider a report on Wednesday (18 September) Agenda for Cabinet on Wednesday, 18 September 2024, 2pm which details the progress of the savings plans and our budget position for the first three months of this financial year.
The report highlights that our delivery of savings is on track in most areas but continuing demand and cost pressures, mainly in adults’ and children’s social care services, could result in a forecast overspend of just over £20 million for 2024 to 2025.
The overall savings target for 2024 to 2025 to be made through the budget savings proposals is £31.3 million, with the savings forecast to be delivered totalling £30.2 million, or 95% of the target. In some areas, the savings originally forecast have exceeded the original target.
In the areas where it is possible that the savings targets will not be met, our departments are currently developing alternative savings proposals to ensure the targets can be met and the total savings needed can be delivered.
County council Leader Councillor Barry Lewis said:
“We continue to be a well-managed, efficient, and financially stable council, and it is to be welcomed that we are progressing well with the savings plan we agreed earlier this year.
“A lot of hard work and strong planning has gone into ensuring we keep our finances on track, but it has not been without many difficult decisions having to be made.
“However, like councils across the country we continue to face great financial challenges, with most of the pressures on our budgets being simply outside our control, for example higher than expected inflation. These pressures affect all our services, but in particular adults’ and children’s social care where demand and costs continue to rise.
“The County Council Network has warned that local services could face a ‘breaking point’ with county authorities facing a £2 billion funding black hole over the next two years, so we know that this issue is not just one facing Derbyshire.
“We are continuing to lobby the government so that we can continue to run vital services to those who need them most, but we also recognise that even more difficult decisions will be needed as we work to balance the books now and in future years.”
County council Deputy Leader and Cabinet Member for Corporate Services and Budget, Councillor Simon Spencer, said:
“While we welcome the good progress of our savings plan, we continue to face many challenges as the forecast overspend indicates. Making savings across the authority is a position that no-one who goes into public service ever wants to be in.
“However, they are necessary if we are to continue to balance our books and we will continue to monitor the financial situation very closely.
“Despite the continuing pressures we remain ambitious for Derbyshire and will continue to do all we can, working with partners, to deliver the best services we can for our residents and communities.”