West Northants Council ends financial year on budget despite massive overspends

Despite an eye-watering £25m overspend in adult and children's services, West Northamptonshire Council (WNC) has managed to balance its budget at the 2023/24 year-end.

The authority has managed to claw itself back from spiralling demand-led costs as its final monitoring report indicates a small underspend of £0.2m, only a 0.1 per cent deviation from budget. WNC originally set a budget of £383.5m across all of its general services at the start of the financial year.

During 2023-24 the Council experienced increased pressures and demand, driving up the costs of adult services, temporary accommodation and social care placements in the Northamptonshire Children's Trust (NCT). The NCT racked up a huge £17.4m overspend on top of another £8.1m spent over budget in adult social care.

The authority had to use all of its £8.4m contingency budget, which was set aside at the start of the year to cope with any unprecedented demand and risk, to balance its books. Substantial savings were also identified within other departments to put budgets back on track.

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Cabinet member for finance, Cllr Malcolm Longley, said the council was "very pleased" with its position, especially considering the massive Children's Trust deficit in funding.

However, Cllr Rosie Humphreys (Lib Dems) questioned how likely another "financial thunderbolt" from the NCT would be and how it would affect the council's financial health. Her concerns were heightened after the council's financial auditor warned WNC about their level of reserves earlier this month.

Chief executive of WNC, Anna Earnshaw, said that the increased demand for children and adults' services was finally starting to level off, but that it could not be predicted totally.

Ms Earnshaw also added that the trust is currently boasting more permanent staff now than it's had over the last 10 years and the majority of cost-saving efficiencies for 2024/25 are on track.

Cllr Fiona Baker, cabinet member for children's services said: "Those councils that have good or outstanding children’s services are more economic than we are currently, but it’s a long-term journey. We’ve got to make sure that the changes we put in place are sustainable and actually do make a difference.

"I’m very much hoping that this is going to be the year that they stay on budget."