The Council is reporting a strong fiscal position halfway through the financial year, an improvement on earlier predictions of a slight overspend. This is attributed to careful management of pressures across services. All planned savings of £7.1 million for the year are also on schedule for delivery.
Despite challenges in demand for services, particularly in Adult and Children's Social Care and Housing, which mirrors difficulties faced by councils nationwide, the financial outlook remains positive. The Dedicated Schools Grant (DSG) also shows good news, with government approval of Derby’s Local SEND Reform Plan making the Council eligible for a grant that will cover 90% of the deficit built up to March 2026. This is expected to reduce the cumulative deficit from £32.7 million to approximately £11 million, with further government support anticipated.
The capital programme, supporting city regeneration and investment, is forecast to spend £177 million this year, slightly below the approved budget due to revised programming of major schemes which will still proceed.
“"This report reflects our continuing sound financial management, achieving a forecast balanced budget halfway through the year, meaning we can keep our necessary reserves at a healthy level. However, we can't be complacent. Demand for adult and children's social care and for housing support continues to grow, and we know there are challenges ahead. The news that our SEND Reform Plan has been approved is also welcome and will make a significant difference."
Councillor Dhindsa also highlighted the positive impact of recent government announcements, including extra funding to tackle homelessness and support for temporary accommodation. Measures to ease pressure on residents and businesses, such as the £100 household payment and business rates exemption for certain businesses, were also welcomed. The announcement of Good Growth funding and the ability for regional Mayors to retain a share of local business rates are expected to benefit Derby through the East Midlands region.
The Quarter 2 Financial Monitoring report will be presented to Cabinet on Wednesday, 11 November, starting at 2pm. The meeting can be viewed live on the Council's YouTube channel.
