Inflation is expected to add more than £22million to Staffordshire County Council costs for next year – and the authority is set to spend around two thirds of its annual budget on caring for vulnerable residents.
The authority is also facing a rising demand for support for children with special educational needs and disabilities (SEND), and is forecast to overspend by £20m in its High Needs Block funding for SEND pupils and students.
Despite these challenges, the council says it is expecting to set a balanced budget for the next financial year however, unlike some cash-strapped local authorities elsewhere in the country. Councils are legally required to balance their books – and if they are unable to do so they must issue a Section 114 notice, which is effectively a bankruptcy notice.
Senior county councillors will consider an update to financial plans for the next five years at a cabinet meeting on 13th December 13. Budget planning for 2024/25 is under way at the authority, but it is not due to find out how much it will receive from the Government until later this month.
Cllr Ian Parry, cabinet member for finance and resources, said:
“We remain a well-run, stable authority despite the difficult financial pressures many councils are facing – we will spend every pound as wisely as we can, supporting jobs and investing in our communities so that Staffordshire remains a great place to live, work and raise a family.
“We are still awaiting a final settlement from Government and then we will finalise our proposals.
“Although we know 64 pence in every pound will be spent on care, thanks to careful management we can still commit to investing in Staffordshire’s future while delivering a balanced budget.”
Cllr Ian Parry, Staffordshire County Council
A report to the cabinet meeting said that it is currently assumed the authority will be able to increase council tax by up to 4.99% without triggering a public referendum on the proposals. This includes a 2% rise earmarked specifically for adult social care.
It is expected that around £435million of an anticipated £680million net budget in Staffordshire will be spent on social care for elderly residents, as well as support for vulnerable children and young people.
Final decisions, including the proposed council tax for 2024/25, will be made in the new year.
The report said:
“Since the budget for 2023/24 was approved in February, inflation has not reduced as quickly as it was hoped and remains higher than the 2% target. As a consequence, interest rates have risen higher than anticipated in February and are likely to stay at that level for longer than expected.
“The performance reports to cabinet each quarter show a picture of relative financial stability during 2023/24, except for the areas of Children’s Services and SEND Transport. Both areas are under pressures from increasing levels of demand and inflation – in addition the High Needs Block, which is funded from Dedicated Schools Grant, is also overspending due to increased demand.
“Identifying efficiency through innovation and new ways of working has featured heavily in previous years’ financial strategies and, in the light of the current economic climate, will continue to be a fundamental part of the council’s plans going forward. The council has a proven track record of delivering cost reductions with £127million being identified and delivered in the past seven years.
“We are continuing to transform and remodel how we work by making more use of technology and data in this digital age, this is ongoing with further advances in technology generating more possibilities.
“With less funding, we are looking at communities to take on even more responsibility and supporting people to make the best choices for themselves and their families so that fewer people need our help.”
Staffordshire County Council report
