A number of new savings proposals have been set out in a Cabinet report that, if agreed, would save us millions of pounds and help us to balance the books for 2026 to 2027.
We continue to face significant budget pressures due to a number of factors which are beyond our control. These include pay and price inflation and rising demand and costs for services, particularly in adults and children’s social care.
We have a predicted shortfall in our budget for the year ahead (2026 to 2027) of £37.8 million which has resulted in the new savings proposals being put forward.
Today’s announcement is detailed in a report to Cabinet (item 5) which will be considered at a meeting on Friday 9 January 2026. It sets out how we intend to make the savings required, meet the funding shortfall and set and maintain a balanced budget for 2026 to 2027.
We are legally required to set a balanced budget in advance of the beginning of each financial year.
The new proposals announced today aim to deliver £22.4 million of savings in 2026 to 2027 to support meeting the predicted budget funding shortfall. The remaining shortfall will be made up from £2.5 million of savings made due to changes in the way we operate, and £12.9 million saved from our corporate budgets.
These new savings proposals follow a significant savings plan which has been in train since 2024 to 2025 and has so far delivered £70 million of savings over the past 2 years.
A plan for the transformation of our operating model is being developed to ensure we are working as effectively and efficiently as we can and are considering all available opportunities to reduce costs through rationalisation and improvement. Once in place, this programme of change aims to save at least £19.2 million and potentially up to £38.7 million over a 2-year period taking us up to local government reorganisation.
Our Cabinet member for Council Efficiency (DOGE) Councillor John Lawson said:
“Since May we have thrown everything we’ve got at ensuring this council is running as efficiently as possible and that every pound is accounted for and spent wisely for the benefit of Derbyshire residents, with no wasteful spending.
“It is well-known that council budgets across the country, not just Derbyshire, are stretched, and the challenges of delivering quality services that people rely on remain. That’s why, although hard work has ensured the council is in a much stronger position than it has been, we are having to put new savings plans forward to ensure we balance the books.
“The pressures in some areas, especially in children’s social care, are incredibly challenging, but careful planning across the council as a whole means we are looking to the future with confidence. This confidence has been boosted by the transformation programme which has already realised millions in savings. Despite the ongoing challenges, this programme is being significantly enhanced to make even more wide-ranging and sustainable changes over the next two years, leaving us in a stronger position for the implementation of local government reorganisation in 2028.”
A full list of new budget savings proposals put forward can be found in the Cabinet report. They include:
- further rollout of technology and digital tools in adult social care to support people’s independence where appropriate
- review of fee rates for home care in consultation with the Derbyshire Home Care Association
- community support beds – improved length of stay and effectiveness will support more people to maximise their independence, reducing the costs of long-term care
- service redesign and removing long-term vacancies across the corporate services and transformation department
- a proposal to close Glossop household waste recycling centre, which requires significant investment to maintain (this would require public consultation before any final decision is made).
The report states that where the proposed savings and efficiencies do not progress, alternative savings will need to be found by services in order to meet our legal obligations to set a balanced budget.
Following the Cabinet meeting on 9 January 2026, our Resources Scrutiny Committee will meet on 14 January to consider the new budget saving proposals and provide feedback to Cabinet.
The budget-setting report will then be considered by Cabinet at its meeting on Thursday 29 January 2026 before going to Full Council when it meets on Wednesday 11 February 2026.
Some of the proposals, if it is agreed for them to go forward, will be subject to further Cabinet reports and then followed by appropriate public engagement or consultation before any final decisions are made. This will include the proposal affecting the Glossop Household Waste Recycling Centre (see separate media release).