In a report detailing our budget position for the first 3 months of this financial year, to be considered by Cabinet on Thursday 11 September 2025, we are forecasting a net overspend of £1.3 million over the course of the current financial year (2025-2026). The report is item 5 on the agenda.
Compared to a forecast overspend at the same point 2 years ago of £46.4 million, and the position at the same point last year of a forecast overspend of just over £20 million, the much-reduced forecast overspend figure for 2025-2026 reveals the results of wide-scale efficiencies and a programme of savings put in place across all areas of spending to reduce costs.
We saved around £29 million during 2024-2025, with continued identified increased savings of £18.9 million rolling into 2025-2026.
Next week’s report highlights the further £18.6 million of savings identified as part of the budget approved in February for 2025-2026, closing a previously identified budget gap. With the increased savings from 2024-2025 and savings identified in the 2025-2026 budget we are forecasting £37.5 million will be saved during 2025-2026.
While the budget position is much improved on recent years, the report states it is important to recognise that by the end of the year it is forecast there will be an overspend on children’s social care of £25.9 million. The forecast underspend across our corporate budgets of £23.2 million and other minor variances has led to the relatively small overall forecast overspend of £1.3 million.
The overspend in children’s social care services is the result of continued inflationary and demand pressures, which also continue to affect 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.”
Our Cabinet Member for Council Efficiency (DOGE) Councillor John Lawson said:
“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.”
As well as the details on the budget position, next week’s report sets out how we are performing against our Council Plan 2025-2029 outcomes, with changes to some of the actions being proposed to better reflect the new administration’s priorities.
These include:
- changes to the climate change objective to better reflect our focus on energy security, energy efficiency and clean energy
- changes relating to the East Midlands Combined County Authority (EMCCA) to reflect current activity
- an action to review strategic highways policy as well as to maintain a safe and serviceable highway network
- changes around how we could further increase transformation and efficiency
- revisions relating to Local Government Reorganisation to reflect our preferred option of 2 unitary authorities
Progress against the 24 strategic objectives outlined in the Council Plan shows that 19 (79%) have made good progress, with 4 (17%) needing review and one requiring action.
Key achievements include work to improve the placement of children in care, the establishment of a dedicated multi-agency SEND quality assurance group to oversee SEND education, health and care planning, the successful planting of 47,000 trees as part of Derbyshire’s Heartwood Community Forest, public health work to tackle health inequalities and the completion of more than 2,500 Live Life Better Derbyshire Health and Wellbeing MOTs.
There will be particular focus on priority areas which include managing the continuing pressures on SEND assessment and work to improve Derbyshire’s roads.