St Helens Council forecasting budget overspend above £3m

A financial monitoring report, for period two of 2025/26, will come before the cabinet at its meeting next Wednesday.

It will provide members with the forecast financial position in relation to the revenue and capital budget for 2025/26 and summarises the council’s reserves and balances position.

Where are the main challenges?

The report says: “At the mid-point in the year, there is a forecast service overspend of £4.888m against the net portfolio budget of £203.880m.

“One-off corporate underspends are forecast to offset the overspend by £1.769m, resulting in a forecast net budget overspend of £3.119m.

“The overspend position as set out shows that the council still needs to control its costs and manage national demand pressures, whilst also achieving agreed savings, in order to deliver a balanced outturn.

“The main pressure of £3.817m is within the children & young people portfolio, with placement costs associated with caring for children looked after, unachieved savings, and frontline social care agency staffing pressures being the main drivers of this.

“There is also a significant overspend within the regeneration portfolio, with a forecast overspend of £0.700m, primarily because of the non-delivery of savings, in particular the delay in the sale of Lincoln House and Wesley House.

"However, the pressure is currently being managed within the place directorate, where the net departmental position is breakeven.

“The environment in which the council is operating continues to be uncertain, and financial modelling to quantify the impact of external events on council budgets is ongoing.”

'Worsening financial position'

Furthermore, in the document, it says in response to the “worsening financial position” and following discussions with the executive management board, the following measures will be implemented with immediate effect: a recruitment freeze, the cessation of all non-essential expenditure, and continued review and reduction of agency workers.

It adds: “Further actions are being taken to address more specific issues, including the introduction of check & challenge meetings between relevant directors and portfolio holders, to focus on significant pressure areas.

“These actions have been agreed to address the current position and as management actions in response to the recommendations of Grant Thornton in the annual auditor’s report. These measures are vital to ensure that the ongoing pressures are mitigated.”