William Eichler 15 September 2023

Derbyshire faces £46m overspend

Derbyshire faces £46m overspend image
Image: Tendo / Shutterstock.com.

Derbyshire County Council’s cabinet is set to consider a report that estimates the local authority’s overspend to be over £46m this financial year.

The council said the overspend is the result of higher than anticipated inflation and increased levels of demand on adult social care and children’s services.

The local authority also said the expected 2023/24 pay award for staff represents a ‘significant financial pressure’.

Many councils are experiencing similar financial pressures. Birmingham City Council last week issued a section 114 and may require large-scale Government intervention.

Durham County Council is forecasting a budget gap of £56m over the next four years and City of York Council members are also set to vote on a four-year plan to address a forecast £11.4m overspend next year.

Guildford BC has also halted recruitment after an S114 warning and Coventry CC has issued an 'urgent warning' to Michael Gove over its finances.

Nine councils within the Special Interest Group of Municipal Authorities (Sigoma) have warned they could issue a section 114 notice by 2025, Sigoma said last month.

If this article was of interest, then check out our features, 'Preventing future Section 114 notices' by Joanne Pitt, Local Government Policy manager at CIPFA, and 'Intervening at the local level' by Nick Graham, director for Legal & Democratic Services at Buckinghamshire Council.

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