Balancing the Budget

Recent government announcements provide a much-needed boost to local authorities with additional support to the sector; these initiatives are expected to help ease some of the financial pressures faced by councils. The government is also looking at the longer term funding for authorities. These are positive steps; however, local authorities continue to face significant challenges due to a wide range of factors.

• Rising Demand for Services: Increasing populations and ageing demographics lead to higher demand for services such as healthcare, social care, and education

• Social Care Costs: The rising cost of providing social care for children and adults

• Homelessness: Increase in temporary accommodation costs for vulnerable individuals and families

• Inflation and Cost Increases: Increases in pay and fluctuations in costs for goods and services which can put additional pressure on budgets

• Continuation of Services: Difficult decisions to prioritise services within the budget constraints and requirement to make savings. 

Last year, the council approved a comprehensive three-year savings programme for 2024-2027. Detailed information on the specific savings can be found in Appendix 8 of our Medium Term Financial Strategy 2024-2027 and Revenue & Capital Budget 2024/25 report.

Through careful financial planning, the council is confident it will be able to put forward a balanced budget for 2025/26 without needing to implement additional budget savings. However, achieving this will require making some difficult decisions, particularly regarding council tax levels and sales fees and charges to protect vital services that people rely on.