A draft budget for 2025/26 that protects hundreds of council services despite serious ongoing costs pressures in social care services was considered by the Council’s Cabinet today (Monday).
The draft budget is the culmination of months of hard work to stabilise the Council’s finances as it continues to face significant financial challenges due to cost and demand pressures for statutory services that provide care the elderly, support vulnerable adults and children, provide temporary accommodation for homeless families and deliver home to school transport for vulnerable children. These services account for around three quarters of the Council’s total revenue spend.
The report to Cabinet said the draft budget allocated growth in those areas that protect the most vulnerable in the city. It also allocates additional money to support key services that residents say should be priorities, including adequate funding to repair potholes and cutting grass.
While the budget assumes £13.4m savings will be achieved, around half of these are management actions, such a deleting vacant posts and the release of budgets that had not been fully spent.
The Council’s ongoing work to reduce cost pressures in social care services and balance the books has been helped by the latest Government’s funding settlement. This included a £6.5 million new recovery grant, a new £1.4 million children’s social care prevention grant and a £5.2 million increase in social care grant.
The report said the draft budget built on the recently agreed medium term financial strategy that guides work to stabilise the council’s finances in the face on serious escalating cost and demand pressings, while also enabling it to remain ambitious in delivering its vision and objectives for the city.
The report also detailed a £395.8 million five-year capital programme that is funded through grants, borrowing, contributions from developers and sales of assets. It that allocates £65.9 million for schemes to deliver a net zero Plymouth, £47.7 million to delivering a sustainable city centre and waterfront, £40.7 to deliver a sustainable Derriford/northern corridor, £30 million for sustainable homes for the city and £97m for delivering a sustainable economy.
Council Leader Tudor Evans said: “Once again, it has been very difficult journey to get us from the position we faced a few months ago when we were facing a significant gap in the resources we needed to enable us to continue delivering more than 300 council services, to one where we can recommend a balanced budget for next year that will enable us to continue delivering the priorities for Plymouth.
“The Government’s settlement was more positive than we have been used to in recent years and we are pleased it has committed to supporting local authorities in addressing the systemic issues in social care that have been taking councils close to the brink.
“We know there are no instant solutions though and we will need to continue to work hard to manage the rising costs and demand in children’s social care placements, homelessness, SEND provision and home to school transport.
“We also need to expect the financial climate we operate in to continue to be tough. Despite this, we are confident that through our medium-term financial strategy and our ongoing work to manage costs and demand, we can continue to protect key services and deliver the priorities that make our city a better place to live.”
The draft budget is due to be considered by scrutiny later this month and a final budget is set to be agreed by the Full Council on 24 February.