Derbyshire council reports ‘vast improvement’ with finances despite criticism over promised efficiencies

Derbyshire County Council has argued that the authority is in a better place financially than it has been for several years since the new Reform UK administration was elected nearly six months ago despite opposition criticism that there are no signs of promised efficiencies.

The Reform UK-controlled council, following a recent meeting this month, is forecasting a net overspend of just over £1.3m against a Revenue Budget for the 2025-26 financial year of over £770.5m after the first quarter of the financial year between April and June.

Cllr John Lawson, Cabinet Member for Council Efficiency, confirmed the council’s savings delivery is on track in most areas but the authority is still facing demand and cost pressures in Children’s Social Care with a full-year forecast expenditure of over £25.9m in excess of the budget while Adult Social Care is forecasting a small net overspend of over £1.3m, offset at a departmental level by an equivalent small underspend in Health and Communities.

Cllr Lawson who argued this is a much better result than could have been hoped for said: “Obviously we are not out of the woods and there are significant challenges that lie ahead and the council will address these in a professional manner.”

Derbyshire County Council’s former Conservative administration before the May election had claimed it was on track to achieve over £31m of savings by the end of the 2024-25 financial year with cutbacks to manage a previously forecast budget deficit of over £39m for the 2024-25 financial year while identifying £18.6m of further necessary budget savings for the 2025-26 financial year to set a balanced budget.

The new Reform UK administration’s 2025-26 Revenue Budget includes savings targets totalling £37.499m with the total savings forecast to be delivered at £35.077m but departments are developing alternative savings proposals to ensure the total value of savings is delivered.

Its Corporate Budgets is forecasting a net underspend of £23.232m based on a forecast underspent Risk Management Budget after the pay award was less than anticipated and further underspends relate to other specific service pressures which are not currently forecast to be allocated, a general contingency figure and the receipt of additional Business Rates Relief grant money that was announced after the 2025-26 Revenue Budget papers.

There is also a forecast in-year deficit on the Dedicated Schools Grant in 2025-26 of £39.027m and adding this forecast to the existing brought forward balance would result in a total cumulative deficit of £83.874m by 31 March 2026.

The council says that the pressure on the DSG is coming from the High Needs Block, as in previous years, which is forecast to be overspent by £39.519m in 2025-26.

But DSG income and expenditure does not form part of the council’s general fund Revenue Budget although any surplus or deficit on the DSG funding held by the council does form part of the council’s reserves.

However, temporary regulations introduced in 2020 and which do not now expire until March, 2028, mean that these balances are held separately while previously any deficit on these balances was funded by the council.

Even though the first Quarter, 2025-26, forecast overspend of £1.331m would reduce the council’s reserve to a balance of £34.181m it would still leave a balance well above the recommended minimum level of £25m.

The council has also stated that if the actual revenue expenditure as of March 31, 2026, requires a further call on reserves, then Earmarked Reserves established for budget management will be used to protect the General Reserve.

It also stated that by the end of the first quarter of the 2025-26 financial year progress has been made against 24 outlined Strategic Objectives in the authority’s 2025-29 Council Plan showing that 19 have ‘good progress’, with four ‘requiring review’, and one ‘requiring action’.

Opposition Conservative Councillors, Wayne Major and Alex Dale, accused the Reform UK administration of not introducing any efficiencies and they said there has been no sign of a Department of Government Efficiency-style approach as was promised when the Reform UK administration was elected nearly six months ago in May.

Conservative Group Leader Cllr Dale questioned what the new administration is actually delivering after nearly six months apart from the programme which the former Conservative administration compiled.

Cllr Dale said: “We are six months in. No sign of DOGE, no sign of how you are going to get savings and basically you have adopted our plan. You were promising a Reform fix but what are you fixing?”

Liberal Democrat Group Leader, Cllr Ed Fordham, said people are not seeing the change they need and and he hopes the current administration will do better because there is a real chance to do more.

Cllr Stephen Reed, Cabinet Member for Business Services, pointed out that he cannot recall a time in recent history where the council administration has been ‘all brand new’.

He added: “It’s a time to find what the situation is and to make plans but not to try and spin it to the public that nothing is happening.”

Cllr Reed said the council has had to address a big decline in support for youngsters with Special Educational Needs and Disabilities after a poor Ofsted report under the Conservative administration and there are things in the Council Plan which are good and there are other things the new administration will change.

He told Cllr Dale: “All these things are in line so do not try and spin it to the public that there is no plan. To try and spin it to the public that nothing has changed is completely ludicrous and you know it.”

The new Reform UK council administration has previously stated that becoming more efficient is a priority but Council Leader, Cllr Alan Graves, has also said that 12 months would be a fair amount of time before residents judge the party on whether there have been any visible improvements.

Cllr Graves has praised Cllr Lawson for doing a good job and pointed out that during the last three years the previous Conservative council administration faced very large multi-million pound overspends but the council’s current overspend stands at just over £1m.

Cllr Lawson conceded he cannot personally take credit for the council’s healthier financial position because he has only been in position for a short period.

But he said: “As Cllr Graves mentioned I do try and bring honesty and hopefully integrity to the position and in that sense I will say how it is.

“I cannot let this go without saying we inherited a period of appalling administration and financial management. I took the view when I was asked to stand in this position that I would assess the situation as it was and put a steady hand on the tiller.”

He added that as far as he is aware there are no cuts planned and that he would not extend any cuts to libraries as has been suggested by Cllr Major but he added that nobody has a ‘crystal ball’.

Cllr Lawson said the situation is much better after the council had originally been looking at a £46m overspend two years ago, and at something in the region of a £20m overspend last year so facing a current overspend of just over £1.3m is a ‘vast improvement’.

He added that he hopes to lead the council into the future by improving services and making efficiencies to deliver a ‘better life experience’ for Derbyshire residents.

The council voted by a majority to note the update of the Council Plan performance with the delivery of savings and the Revenue Budget position and forecast outturn for 2025-26 at the first quarter of the financial year.

It also agreed in-year adjustments made to its Strategic Objectives, noted the transfer of £0.776m back to Adult Social Care and Health from Corporate Services and Transformation and also noted the council’s position on its Reserves.