Hertfordshire County Council facing £20 million overspend by end of financial year

A council is looking to to make £14 million worth of cuts, after a report predicted it wll overspend by more than £20 million by the end of the financial year.

In Hertfordshire the county council is responsible for a range of services that include adult care, highways, children’s services and public health, as well as trading standards and the Fire and Rescue Service.

To provide those services throughout 2024/25 the council has set a budget of just over £1.1 billion.

Yet the latest data shows that by the end of June – just three months into the new 2024/25 financial year – the council had already spent £4.6m more than had been expected.

Increasing costs of materials, high energy prices and increased demand for council services are all said to have had an impact.

Without action, council officers predict that by the end of the financial year that overspend could reach £20.9m – £0.9m in excess of the council’s £20m contingency fund.

On Thursday (October 3) the “challenging financial position” will be reported to a meeting of the council’s resources and performance cabinet panel.

Speaking in advance of the meeting, county council leader Cllr Richard Roberts suggested that the council is “well placed” to bring down the overspend.

“Like all local authorities we are again seeing pressures on our budget in-year due to a range of external factors,” he said.

“But thanks to our prudent financial planning I believe we are well placed to bring down this overspend to ensure that we can meet the challenges that are just over the horizon.

According to the officers’ report the levels of overspend being reported after just three months of 2024/25 are “unprecedented”.

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