Issue - meetings

This report responds to the agreed action in the quarter two budget monitoring report for 2025/26 for the Corporate Director for Children’s Services to bring forward to December Cabinet a detailed report on the DSG high needs expenditure forecast and available mitigation measures. This report also seeks Council approval for additional resources required over the approved budget.

The quarter two budget monitoring for the DSG reported to the council’s Cabinet on 26 November was a projected increase in the high needs funding gap for 2025/26 from the budgeted gap of £57.5m to £71.8m. This reflects higher than expected growth in demand in the later months of the last financial year with this unabated and with a significant increase in the costs of pupil placements. 

The cumulative deficit at 31 March 2026 is projected to be £183.1m.

The Portfolio Holder for Children, Young People, Education and Skills presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

Cabinet was advised that the report responded to the agreed action in the quarter two budget monitoring report for 2025/26 for the Corporate Director for Children’s Services to bring forward to December Cabinet a detailed report on the DSG high needs expenditure forecast and available mitigation measures.

Further to this Cabinet was advised that the report also sought Council approval for additional resources required over the approved budget.

Cabinet was informed that the quarter two budget monitoring for the DSG reported to the council’s Cabinet on 26 November was a projected increase in the high needs funding gap for 2025/26 from the budgeted gap of £57.5m to £71.8m, and that this reflected higher than expected growth in demand in the later months of the last financial year with this unabated and with a significant increase in the costs of pupil placements. 

Cabinet was advised that the cumulative deficit at 31 March 2026 was projected to be £183.1m.

RECOMMENDED that Council: -

(a)        Approve a £14.3m increase in the 2025/26 high needs budget. This brings the forecast expenditure to £71.8m more than the grant made available by government as part of the DSG.

(b)        Request the Corporate Director of Children’s Services implement the deficit management measures outlined in this report.

Voting: Unanimous

Portfolio Holder: Children, Young People, Education and Skills

Reason

The council’s financial regulations require that all budget overspends are approved by the Council.

The Portfolio Holder for Children, Young People, Education and Skills presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

Cabinet was advised that the report responded to the agreed action in the quarter two budget monitoring report for 2025/26 for the Corporate Director for Children’s Services to bring forward to December Cabinet a detailed report on the DSG high needs expenditure forecast and available mitigation measures.

Further to this Cabinet was advised that the report also sought Council approval for additional resources required over the approved budget.

Cabinet was informed that the quarter two budget monitoring for the DSG reported to the council’s Cabinet on 26 November was a projected increase in the high needs funding gap for 2025/26 from the budgeted gap of £57.5m to £71.8m, and that this reflected higher than expected growth in demand in the later months of the last financial year with this unabated and with a significant increase in the costs of pupil placements. 

Cabinet was advised that the cumulative deficit at 31 March 2026 was projected to be £183.1m.

RECOMMENDED that Council: -

(a)        Approve a £14.3m increase in the 2025/26 high needs budget. This brings the forecast expenditure to £71.8m more than the grant made available by government as part of the DSG.

(b)        Request the Corporate Director of Children’s Services implement the deficit management measures outlined in this report.

Voting: Unanimous

Portfolio Holder: Children, Young People, Education and Skills

Reason

The council’s financial regulations require that all budget overspends are approved by the Council.