The council's financial performance for the first six months of the financial year indicates that while most services are within budget, approximately 108% of the remaining pressure is focused on Children's and Adult Social Care. This is attributed to the increasing complexity of care needs and the rising cost of specialist provision.
Costs within Children's Services have risen by around £1.5m since the summer. The report highlights that one residential placement alone now costs over £1m annually, with seven others exceeding £500,000 per year, reflecting national shortages of suitable placements driving up prices.
Councillor Daniel Cowan, Leader of the Council, stated that additional actions taken across the organisation are having an impact, with the overall financial position improving. However, he acknowledged the significant challenge in Children's Services, where demand and costs for vulnerable children remain exceptionally high.
“"Around 108% of our forecast overspend remains concentrated within statutory Children's and Adult Social Care services. Across the vast majority of other council services, budgets remain well managed and services are continuing to perform strongly."
Councillor Cowan added that local taxpayers cannot sustain the burden of 'fundamentally broken' social care markets, with escalating costs for both adult care and children's placements being unsustainable. He emphasised the council's ongoing efforts to raise these concerns with the Government.
Councillor Paul Collins, Cabinet Member for Finance, Assets and Investments, noted that the implemented measures are working, but the increase in Children's Services pressures highlights the continuing challenge for local government. He stressed that these are largely demand-led services where costs can escalate rapidly.
Councillor Collins clarified that the issue is not a lack of financial control, as most services operate within budget. The core problem is that statutory social care demand and market costs are rising faster than available funding. The council plans to continue strengthening budget recovery arrangements and challenging service delivery.
The report also indicates that the council is making strong progress on its savings and transformation programme, with most planned savings and additional income for 2026/27 already delivered. Further investment will accelerate the Transformation Programme to modernise services and strengthen long-term financial sustainability.
