A multi million pound budget savings plan put in place by Derbyshire County Council is progressing well but they have revealed that high demand and cost pressures across social care are continuing to challenge their finances.
In January they announced a number of budget savings proposals to manage a funding gap of around £40 million for the current year, 2024 to 2025. Plans to take forward the budget savings proposals were agreed in February, leading to them being able to set a balanced budget for 2024 to 2025.
A number of the proposals have now been put to public consultation and either agreed or are awaiting final decisions, with savings being made across a number of their services. Many of the savings proposals are still in the planning or consultation stage.
The Councils Cabinet is to consider a report next week which details the progress of the savings plans and our budget position for the first three months of this financial year. The overall savings target for 2024 to 2025 to be made through the budget savings proposals is £31.3 million, with the savings forecast to be delivered totalling £30.2 million, or 95% of the target. In some areas, the savings originally forecast have exceeded the original target.
In the areas where it is possible that the savings targets will not be met, their departments are currently developing alternative savings proposals to ensure the targets can be met and the total savings needed can be delivered.
County Council leader Councillor Barry Lewis said:
“We continue to be a well-managed, efficient, and financially stable council, and it is to be welcomed that we are progressing well with the savings plan we agreed earlier this year.
“A lot of hard work and strong planning has gone into ensuring we keep our finances on track, but it has not been without many difficult decisions having to be made.”
“However, like councils across the country we continue to face great financial challenges, with most of the pressures on our budgets being simply outside our control, for example higher than expected inflation. These pressures affect all our services, but in particular adults’ and children’s social care where demand and costs continue to rise.
“The County Council Network has warned that local services could face a ‘breaking point’ with county authorities facing a £2 billion funding black hole over the next two years, so we know that this issue is not just one facing Derbyshire.
“We are continuing to lobby the government so that we can continue to run vital services to those who need them most, but we also recognise that even more difficult decisions will be needed as we work to balance the books now and in future years.”
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