What issues are driving budget pressures?
Spiralling social care prices, growing service demand and inflation are driving up costs. The Government’s autumn statement last month didn’t include any extra funding for councils which has ramped up the pressure for local authorities.
How bad is the situation?
Nearby councils, such as Nottingham City, have declared that they do not have enough resources to continue to deliver services by issuing a section 114 notice, and others, such as Leicester and Derbyshire, say they are being pushed to the brink.
We are not in crisis territory. We’ve successfully managed better than most by not forgetting about the financial realities of local government when delivering services. But we do have a significant budget gap and need to deliver services differently.
How does this affect the council's budget?
Inflation and service pressure adding £220m compared to £100m of increased income.
Pressures include:
- Surging cost of placements for children in care - with costs for just 10 children with complex needs now reaching £5m
- A 56 per cent rise in unaccompanied asylum seeking children in care and care leavers since last year
- Over £220m of net inflation and service pressures across the next four years - compared to £100m of increased income (including Council Tax)
How big is the council’s budget?
The council’s yearly budget totals £560m.
How is your budget spent?
The four-year budget includes:
- A £6m budget shortfall next year – rising to £33m in 2026, £60m in 2027 and £83m in 2028
- £127m more mainly to support vulnerable people – to pay for more home and residential care, and support people with physical disabilities, learning disabilities and mental health needs
- An extra £113m - to cover inflation and the National Living Wage increase
- Major redesigns of services to manage future demand, including:
- Special educational needs and disabilities - a new approach balancing growing demand for support with getting children the right help
- Working with Barnardo’s to run children’s homes locally
- Boosting ‘supported living’ - over 100 new placements created since 2020, enabling people with learning and physical disabilities and mental health needs to learn life skills and live independently
- Rolling out ‘care technology’ - over 2,600 pieces of equipment, including falls detectors and GPS location trackers, installed over last year, benefiting over 1,000 people
- £39m of savings – including redesigning services, reducing the cost of back-office support services by maximising digital technology and smarter procurement
- An extra £400k to help the council do more to tackle flooding - after 500 homes flooded across the county in the wake of Storm Henk in the New Year
- £2.7m to maintain roads and fix potholes - including £2.2m of Government ‘Network North’ money
- A £445m four-year capital pot – including £18m to improve bridges, roll out flood alleviation projects and improve road surfaces
Read the four-year budget proposals
What about Council Tax?
For 2024/25, there is a three per cent Council Tax increase for core services - and a two per cent increase in the adult social care precept. This generates £18m more for front line services and equates to a £1.46 a week for a Band D home.
Who else does my Council Tax go to?
District councils, police, fire and parish and town councils all make up portions of residents’ Council Tax bills. They each set their own budgets.
How is the budget agreed?
We consult on our proposals, analyse the results and take a report to our council’s Cabinet with final budget proposals – the council’s final budget is agreed at a full county council meeting in February.