County pledges money for children and adult social care in Devon budget – but savings made elsewhere

Devon County Council has pledged an increase in cash for children and more money for adult care, climate change and transport in its annual budget.

The council’s ‘target budget’ figures released on Tuesday (January 2) show a proposed 10.4 per cent increase in the revenue budget for children’s services with a six per cent rise in adult services and 4.7 per cent extra for climate change, environment and transport.

But the council is also still working towards reducing a forecast overspend of £4.5million and identify further savings before councillors are asked to sign off the budget for the 2024-25 financial year.

At its meeting in September, the council’s cabinet agreed to reduce department budgets by a combined total of £10m, but as of November it was still seeking to find a final £2.9m in savings, which currently counts towards the £4.5m shortfall.

The council said reductions in other departmental spending meant an overall rise of 6.3 per cent in its budget for next year, with a total spend of more than £743m.

The cabinet will discuss these details on Wednesday, January 10, with a meeting of the full council to debate the budget in February.

The council still has a £39.7m funding deficit in its SEND (Special Educational Needs and Disabilities) provision, but in line with guidance from the Department of Education, this deficit will not be dealt with this financial year, but carried forward to future years.

In her report to the cabinet on Wednesday, DCC director of finance Angie Sinclair will outline the financial challenges facing local councils, including high inflation – which although now falling has still had an effect – plus the increase to the national living wage, which will cost the council another £25.7m.

Her report states: “This is reflected in the proposed target budgets with investment of £48.5 million to cover inflation and the national living wage plus £44.9 million to cover demand and other spending pressures and priorities.

“To enable the authority to set a balanced budget, savings, alternative funding and additional income of £49.6m have been identified. Overall there is additional funding of £43.8m or 6.3 per cent for services next year.

“It is not planned to support the proposed budget targets by using general reserve balances. This reflects a strategy of ‘living within our means’ and, as such, to set service budgets that are affordable within anticipated income and funding totals for next year.”

The report also says the council looks likely to increase its share of council tax for the new financial year by 4.99 per cent – which includes two per cent ring-fenced for social care and is the maximum allowed without holding a referendum.

It also said the county council had received an additional £15.9m in government funding, compared with the previous year’s amount.

The full council is set to debate the budget on February 15.