STAFFORDSHIRE County Council has ended the last financial year with an underspend of more than £6million.
Cabinet members welcomed the final financial report for 2025-26 at their meeting, which revealed a saving of £6.696million – 0.89% – compared to the balanced budget of more than £750million.
Savings included almost £1million in the adult social care and safeguarding budget and more than £3million in inclusive education and learning.
But care placement costs for children were over budget by £3.762million, while the older people and physical disabilities budget, including extra care, was overspent by £7.135million.
The High Needs Block, which provides support for children and young people withspecial educational needs and disabilities (SEND), was overspent by £43.6million at the end of the financial year, reflecting growing demand for support and increasing complexity of need and costs, a report to the cabinet meeting said.
The Government has put in place a "statutory override", meaning this deficit remains separate to the council’s other reserves for the time being, however.
Cabinet members were asked to approve contributions to reserves, as well as a newly set-up reserve to support future spend associated with local government reorganisation (LGR).
The report said:
"The 2025-26 savings made through the workforce efficiency review, along with a specific LGR grant received in 2025-26, will contribute to this reserve.”
Cllr Sean Bagguley, cabinet member for finance and resources, said at the meeting:
"We’ve successfully delivered a £753million budget with a small surplus in the face of rising costs for fuel, material and wages.
"I think it is fair to say this is a result of consistently strong, detailed management, with a focus on delivering the services people need – constantly remembering that every pound of public money spent is spent wisely.
"The revenue outturn highlights an underspend of £6.696million. We should not underestimate what an achievement that is, bearing in mind rising costs associated with employee costs and CPI rate of around 3%.
"I think it is real evidence that the efficiency programmes are bedding in nicely. While achieving these savings and efficiencies, we’re also meeting our obligations, with £330million spent on adult social care, £223million on services for children and families and large investments – £74million – into highways and £29million into new and improved school buildings.
"That is an excellent achievement and something we should all be proud of."
Council leader Cllr Martin Murray said:
"It really is amazing the savings we have found when you bring in the increase we’ve had in National Insurance, wages and energy which runs across every single structure.
"It shows fantastic work by the whole team here at the county council and they need to be noted for that work they have done to find that."
