The Resources Scrutiny Committee was scheduled to discuss proposals for budget savings for the period 2026-27 to 2030/31 and an update to the Medium Term Financial Plan. The committee was also to consider public questions.

Budget Savings Proposals 2026-27 to 2030/31 and Update to Medium Term Financial Plan

The committee was scheduled to scrutinise budget savings proposals for the upcoming financial years, as considered by Cabinet on 9 January 2026. The report detailed the financial context and approach to budget setting for 2026-27, outlining potential options for savings and efficiencies. It was noted that if proposed savings and efficiencies did not progress, alternative measures would be required to ensure the Council could set a balanced budget, as mandated by law.

The report highlighted significant financial pressures facing Derbyshire County Council, particularly in Children's Social Care and Adult Social Care, driven by pay and price inflation and increasing demand for services. The forecast for Children's Social Care indicated a substantial overspend for 2025-26, with similar pressures anticipated for 2026-27. The Council's financial position had been challenging, with reserves being depleted due to planned and unplanned uses.

The budget preparation process involved extensive engagement with departments and scrutiny of draft budget proposals. Key assumptions underpinning the funding forecast for 2026-27 included a total Council Tax increase of 4.99% (a 2.99% general increase and a 2% Adult Social Care Precept) and a 1.6% annual growth in the Council Tax base. The provisional 2026-27 Local Government Finance Settlement was noted to have negatively impacted rural shire counties, necessitating maximum permitted Council Tax increases to maintain funding levels.

A significant budget gap of £37.777 million was forecast for 2026-27, before the implementation of savings proposals. The report detailed various service cost pressures, including those in Adult Social Care and Health, Children's Services, and Place services, as well as corporate budget pressures.

The Medium-Term Financial Plan (MTFP) update projected significant gaps in the following years beyond 2026-27, indicating that further savings would be required to balance the budget over the three-year financial settlement. The MTFP did not include any impact from proposals for local government reorganisation.

The report outlined the Council's funding sources for 2026-27, with the majority derived from Council Tax. Sensitivity analysis indicated that a one percent increase in Council Tax equated to approximately £5 million in income.

The report also detailed proposed savings and efficiency proposals, categorised into those expected to require consultation and those anticipated not to. These included potential closures, reductions in recycling credits, reviews of fee rates for home care, and efficiencies in various service areas.

The committee was asked to note the financial context, consider the budget savings proposals, and provide feedback to Cabinet. It was also noted that statutory consultation with business ratepayers, trade unions, and the public would be undertaken for relevant proposals.

Public Questions

The agenda also included a slot for public questions, with a maximum of 30 minutes allocated. The procedure for submitting questions was outlined, requiring notice to be given in writing or by email by a specified deadline. Questions could be asked of the Scrutiny Committee or attending Council officers on any matter within the Committee's scope.