Opposition councillors have criticised the Conservative-controlled Derbyshire County Council after plans for its 2025-26 budget were given the go ahead with more multi-million pound saving plans in the pipeline.
The council presented its Revenue Budget Report 2025-26 and its Reserves Position at a Full Council meeting, on February 12, which were both voted through and approved despite concerns raised by Labour and Liberal Democrat councillors.
Derbyshire County Council set its net budget for 2025-26 at £769.8m and agreed to a council tax rise of 4.99per cent after revealing it is on track to achieve £31.3m of savings by the end of the current 2024-25 financial year after a number of unpopular cutbacks.
But it has identified £18.6m of further budget saving plans as necessary for the 2025-26 financial year to help successfully set another balanced budget.
Labour Cllr Kevin Gillott, told the controlling Conservative council: “There are people suffering out there because of the cuts that are taking place and we blame everyone for that and we take no responsibility and you think none of your decisions have had any effect but they have.
“We need this budget to balance over a year. Three things have got to come in as projected – Adult Social Care, SEND (Special Educational Needs and Disabilities) and Children Services – and if there is anything to suggest they will not come in on budget then this budget will be blown out of the water and there are insufficient reserves left.”
However, the council has blamed its financial struggles on continuing huge external pressures from pay and price inflation, a continuing increase in cost and demand for services especially with children’s services and adult social care alongside concerns over the Labour Government’s financial settlements for local authorities.
It approved plans as part of the 2025-26 budget to raise the county council’s share of council tax by 4.99per cent and it has outlined details of how the authority aims to manage and spend the proposed £769.8m overall net budget for the coming year.
Even though there is a funding shortfall for 2025-26 of around £20.5m the council has argued this can be met with £18.6m of budget savings proposals and the remaining funding shortfall of £1.9m will be met from reserves.
It has also argued that its reserves position is at an adequate level within a Five-Year Financial Plan which includes more savings to be achieved by 2029-2030 to maintain financial sustainability.
Cllr Simon Spencer, cabinet member for corporate service and the budget, has said the council’s General Reserve position will be safely in the region of £35m which he explained cannot fall below about £25m.
However, Cllr Gillott told the meeting: “The key thing is we have spent a heck of a lot of reserves in the past years and we can’t do that again. If we start going into reserves that are left I think the game is up.”
Liberal Democrat Group Leader, Cllr Ed Fordham, also told the meeting there are so many ‘red flags’ in the reserves report with every paragraph identifying risks from ‘moderate to significant’.
Council Leader, Cllr Barry Lewis, said the council is aiming to set a balanced budget while facing challenges including inflationary prices and adult social care costs and even though it has increased its council tax rate he pointed out that there have been increases elsewhere of ten per cent and more.
He stressed that there is also a robust five-year financial plan in place and that Derbyshire residents can expect the council will deliver ‘responsibly, efficiently and sustainably’ and that is what the council is committed to doing.
Cllr Spencer said: “We go through every one of our reserves with a fine tooth comb to make sure they are in the right place for the right purpose.”
He added it is common knowledge local authorities up and down the country are facing the same significant challenges as Derbyshire County Council and he believes that facing challenges head on is the way to deal with the problems instead of painting a picture of ‘doom and gloom’.
Cllr Spencer also said: “We cannot get away from the fact we have faced challenges in the last few years and the authority has managed to come through that in a way others have not been able to.”
He stressed there is continual pressure from Adult Social Care and Children’s Services’ costs, alongside an increase in employers’ National Insurance contributions introduced by the Labour Government even with the support of a Government grant.
Cllr Spencer added: “Everyone has a clear and defined understanding of the challenges we face. These challenges are not going away and we need to drive forward with our savings targets itemised in this report.”
He also said: “This authority will have to keep its foot on the gas and if we do not, we will slip behind and we will not be in a position to deal with the in-year pressures.”
However, Liberal Democrat Cllr Fordham said: “The truth is this is not where this council should be. It’s not where Local Government should be. It’s not meeting the ambitions or needs of our residents.”
Cllr Fordham also said ‘the truth is Local Government finance is being skinned to the bone’ and he believes the council has ‘overspent’ and it is ‘against the wall’ and he added that it does not look like it is getting any better.
He said: “I cannot support this budget and will not support this budget paper.”
Labour Group Leader Cllr Joan Dixon said she acknowledges the challenges with Adult Social Care, Children’s Services and SEND but she argued the former Conservative Government has failed to fund Local Government adequately and that Derbyshire County Council’s administration has failed to make difficult decisions and that has resulted in the council’s finances being ‘brought to its knees’.
She argued the council has failed the most vulnerable with cutbacks including children centre closures, the closure of centres for people with learning difficulties, the selling-off of care homes, a ‘failed’ Ofsted inspection of its SEND services and the withdrawal of funding for voluntary groups.
Changes to council services during 2024-25 have already included agreeing to closing ten children’s centres, closing and sell eight residential care homes, and closing five day centres for the elderly after blaming high demand and cost pressures across social care.
Cllr Dixon also claimed the Labour Government’s grants for councils have risen and that the new Government is committed to introducing multi-year settlements instead of the current one year arrangements which can make it difficult for councils to manage and prepare spending plans.
However, Council Leader, Cllr Barry Lewis. said he did not think the Labour Government was a ‘knight in shining armour’ because he claims the council still does not have the necessary resources coming from Government that were promised and that it is yet to be seen if multi-year settlements would materialise.
Cllr Spencer has also cast doubt on the details of the list of pledges concerning Government settlements for local authorities.
Council Leader Cllr Lewis added: “The fact is the situation is somewhat better this year and mostly because we have taken the necessary action as an administration and an organisation to deliver these savings.
“And there is a plan long-term and the picture is better than it was and we are getting on with it.”
He said: “We have demonstrated strong financial discipline and we will continue to do that next year with clear achievable saving projects, protecting vital services.”
The council’s budget saving plans for 2025-26 include: The use of AI tools to support adult social care; A review of current extra-care housing schemes; Centralisation and redesign of council support services; A review of transport provision for adult social care services; Improving support to reduce hospital stays and maximise independence; Reducing its number of properties; Environmental waste and recycling reforms; And making savings in senior management costs.
Many of the latest saving plans will be subject to Cabinet reports, public engagement or public consultation before any final decisions are implemented.
Cllr Spencer has also stated that redundancies can never be ruled out but the council will do its best to avoid any compulsory redundancies.
Cllr Lewis said: “Strong and effective leadership and financial management has enabled us to set a balanced budget for the year ahead and while the situation remains extremely challenging we have a robust plan in place for 2025-26.
“We are doing what we can, including changing the way we work across the council and following strict measures to cut costs at every level.
“However, the challenges we continue to face are far greater than experienced before and are down to external factors simply outside our control.
“We fully acknowledge that the use of reserves is not sustainable, and we are pleased that the hard work we have done to manage our finances over the last few years means that we are able to set the 2025-26 budget without needing to draw down further from our reserves.
“The demand pressures we are facing are forecast to continue, which is why on top of all that we are doing, and the difficult decisions we are having to make, we continue to lobby government for extra funding, especially for social care and highways maintenance.”
The council has stated that it is continuing to lobby the Government for extra funding after Cllr Spencer explained that during the past 13 years the council has had to work hard to save £300m, and by the end of this financial year that figure is expected to rise to £330m, with a predicted rise to £368m by 2026.
Cllr Spencer said: ““It has been a tough road to get to where we are and the position will remain difficult for some time.
“However, we believe the budget we have agreed is sustainable and the council tax level is fair if we are to continue to provide vital services for older and vulnerable people and children.
“We acknowledge the rise in council tax will not be welcomed by residents with already stretched household budgets but we have had a clear steer from Government on the level we should be setting in order to raise much-needed extra funds.”
He added: “The robust savings plan agreed at the beginning of 2024 is on track to achieve 100per cent of its target in the current year, and we are confident that the new savings plan put forward for the year ahead will do the same.”
