Our financial situation

Councils across the country continue to face difficult financial situations.

Some have effectively gone bankrupt, and the number close to that state, continues to go up.  

For 2025/26 budget we’ll again have to make tough choices on changes to services to make the savings we need to stay financially responsible. 

Give your views on our budget for 2025/26

Like all councils we are facing severe financial pressures as we start to look at how we can set a balanced budget, protect services and invest in your future.

We're starting to look at tough decisions and opportunities ahead of setting our 2025/26 budget in February.

The process starts with ideas for savings, income generation and areas for investment being considered now – and all residents can get involved. 

You can take our survey until 2 December.

Take 2025/26 budget survey

Or you can view or ask questions at meetings at which detailed budget proposals will be discussed, which are also streamed live on our YouTube channel, are:

• Community and Corporate Overview and Scrutiny Committee - Tuesday 29 October 29 at 7pm
• Community and Corporate Overview and Scrutiny Committee - Tuesday 12 November at 7pm
• Community and Corporate Overview and Scrutiny Committee - Tuesday 17 December at 7pm
• Community and Corporate Overview and Scrutiny Committee – Monday 20 January at 7pm

Questions can be submitted in advance of these meetings.

What’s impacting our finances

Our priority will be helping the most vulnerable, which is why we have to keep making these difficult decisions.

Financial difficulties for many councils

Councils across the country are facing financial difficulties. Some have effectively gone bankrupt, and the number close to being bankrupt, is increasing.

We are not facing bankruptcy at this stage but it is important that residents understand the true picture. For us, the problems are caused by three key factors.

Low government funding

We receive about £30million a year less from the government than the average local authority – that works out at about £400 less per household each year.

This is due to the formula the government uses to slice up the overall funding it allocates to local authorities.

These formulas do not reflect real local needs because they do not factor in vital issues such as the number and complexity of children with Special Educational Needs.

Inflation

The rate of inflation has fallen but that is after a period of high rates, meaning costs have gone up significantly and are not coming down. 

High inflation caused real cost increases to the council of about £10.8million last year.

Increasing needs in the community

The problems caused by inflation are made more difficult because more people in the borough have care needs that the council must meet.

These include children with Special Educational Needs, children in care, and adults with learning difficulties or physical disabilities.

The needs residents have are also becoming more complex. The additional cost of providing these services this year is about £9.7million.

2025/26 budget – key dates

• October 2024 to December 2024 – Overview and scrutiny committee review draft budget for each directorate, including savings, growth and special items
• December 2024 - Local Government Funding Settlement agreed, incorporated into models
• January 2025 – Council Tax base setting, confirming the number of properties and expected income to factor into budget
• January 2025 – Chief Finance Officer’s report to Executive
• February 2025 – Executive and Council are presented with budget for agreement