Staffordshire County Council ends year with £6.7m underspend

Staffordshire County Council has ended the last financial year with a saving of more than £6m.

Cabinet members welcomed the final financial outturn report for 2025/26 at their meeting on Wednesday 17 June, which revealed a saving of £6.696m, or 0.89%, compared with the balanced budget of more than £750m.

The county council is responsible for services across Staffordshire, including highways, education, social care and support for children and families.

Savings included almost £1m in the adult social care and safeguarding budget and more than £3m in inclusive education and learning.

But care placement costs for children were over budget by £3.762m, while the Older People and Physical Disabilities budget, including Extra Care, was overspent by £7.135m.

The High Needs Block, which provides support for children and young people with special educational needs and disabilities, was overspent by £43.6m at the end of the financial year.

A report to Wednesday’s cabinet meeting said this reflected growing demand for SEND support, increasing complexity of need and rising costs.

However, the Government has put in place a statutory override, meaning this deficit remains separate from the council’s other reserves for the time being.

Cabinet members were asked to approve contributions to reserves, as well as a newly set up reserve to support future spending linked to Local Government Reorganisation.

The cabinet report said

“The 2025/26 savings made through the Workforce Efficiency Review, along with a specific LGR grant received in 2025/26, will be contributed to this reserve.”

Councillor Sean Bagguley, cabinet member for finance and resources, said at Wednesday’s meeting

“We’ve successfully delivered a £753m budget, with a small surplus, in the face of rising costs for fuel, material and wages. I think it is fair to say this is a result of consistently strong, detailed management, with a focus on delivering the services people need, constantly remembering that every pound of public money spent is spent wisely.

“The revenue outturn highlights an underspend of £6.696m. We should not underestimate what an achievement that is, bearing in mind rising costs associated with employee costs and CPI (consumer prices index) rate of around 3%.

“I think it is real evidence that the efficient programmes are bedding in nicely. Whilst achieving these savings and efficiencies, we’re also meeting our obligations, with £330m spent on adult social care, £223m on services for children and families and large investments, £74m into highways and £29m into new and improved school buildings.

“That is an excellent achievement and something we should all be proud of.”

Council leader Martin Murray said

“It really is amazing the savings we have found when you bring in the increase we’ve had in National Insurance, wages and energy which runs across every single structure. It shows fantastic work by the whole team here at the county council and they need to be noted for that work they have done to find that.”