Three biggest risks for Nottinghamshire County Council’s finances named

Nottinghamshire County Council has named its three biggest financial risks as it faces going overbudget this year.

The authority is currently predicting that it will spend £1.9million more than its budget passed in February for the 2024-25 financial year.

A monitoring report which will go before Cabinet tomorrow (July 25) sets out challenges facing the council over the rest of the year.

Care which is jointly funded with the Nottinghamshire Integrated Care Board, who are responsible for organising the county’s healthcare, is one cause of concern.

Talks are going on to come to “a reasonable compromise”, and the report says close attention is being paid to the financial implications for the council.

School transport that the council is required to provide has also faced significant demand.

Local authorities are required to provide assistance to some low-income students who live further away from school and some of those with Special Education Needs or Disabilities.

The report says the cost of both areas have significantly increased due to inflation, and could have further cost pressures during 2024-25.

The council’s school meals and other catering services are also expected to lose at least £1.7million this financial year.

The increasing price of food and Pay Awards mean that the price charged per meal no longer covers the cost of providing it.

The future of the services is in doubt after a review group recommended that the council stop delivering these services in-house, and move to a partnership.

Cabinet will decide whether to accept the recommendations during the same meeting on Thursday.

The council says it has now delivered around half of the £6.7million savings that it aimed to make this year.

Further savings are also planned over the next two financial years.

The report says: “The key message to effectively manage budgets and, wherever possible, deliver in-year savings is being continually reinforced.”

The county council said in February as it passed its budget that it was under increasing pressure, but was in better position than most authorities.

Technology is being used to reduce costs for adult social care, one of the authority’s biggest expenses.