Norfolk County Council facing tough budget decisions amid national funding uncertainty

Norfolk County Council is facing difficult decisions as the pressures on local government budgets continue to grow. 

The council will need to put more money into its budget to protect vulnerable people despite 'substantial uncertainty' about local government funding. 

The budget is expected to grow by £64.5m for 2025-26 , however this is not expected to cover the projected increases in demand, particularly in adult social care and children's services. 

Cabinet members will consider a number of budget proposals when they meet on Monday 7 October. The council faces 'a significant challenge' in developing Norfolk's 2025-26 spending plan that seeks to address a budget gap of £44.75m. 

Councillor Andrew Jamieson, the council's deputy leader and cabinet member for finance, said:  

"The financial challenges faced by local councils cannot be understated. Demand continues to increase, costs continue to rise and government funding remains unclear. 

"We have identified a number of savings which we do not want to make, but we have no choice under the present financial circumstances while we await forthcoming financial settlements from the Government.  

"We have a legal duty to balance our budget and a responsibility to Norfolk residents to keep their county solvent. We have successfully navigated our budget through the challenges of the pandemic, the spike in inflation and a continuous rise in demand." 

The pressure on the council's budget is also being felt in the current financial year. Departmental financial controls have been introduced in both adults and children's service to ensure the council continues to operate within its agreed budget for 2024/25. 

Further council-wide financial controls will be considered in 2024/25 if financial pressures are not adequately addressed through departmental controls. These 'enhanced financial controls' would increase centralised financial monitoring and place a freeze on some non-essential expenditure. 

The £33.552m of savings proposals identified for 2025-26 make a significant contribution towards the council's £44.75m savings target: 

• Adult social services, £16.52m 
• Children's services, £7m
• Communities and environment, £0.613m
• Infrastructure, £6.082m
• Fire and rescue, £0.065m
• Strategy and transformation, £1.67m
• Chief executive's directorate, £0.102m
• Finance, £1.5m

A number of the proposals that Cabinet members will be considering would require public consultation - with feedback taken into account before any final budget decisions are made in February 2025. 

Proposals that would go out to public consultation are: 

• Raising council tax - with the following options: an increase of 3%, an increase of up to 5%, an increase of more than 5%. 
• Review of our Housing Related Support Services 
• Switch off a further 2% of Norfolk County Council maintained streetlights 

Cabinet will consider the finance reports when it meets at 10am on Monday 7 October. 

Watch the 7 October 2024 cabinet meeting, live or afterwards, and read the reports. 

The council's scrutiny committee and select committees will consider the budget proposals, before Cabinet considers the proposals in January 2025 and the Full Council makes a final decision on the budget in February 2025.