The council has a revenue budget of £193.3m in 2023/24 to deliver services. This includes £14.1m of Directorate planned savings identified by the previous administration which present a significant challenge to deliver in full in 2023/24.

Like many other councils across the country, Herefordshire Council is experiencing significant budget pressures as it faces rising costs due to inflation, the cost of fuel, and the continuing impact of increasing demand for adult and children’s social care.

The most significant budget pressure is in children and young people’s services, where the current forecast is an overspend of £10.6m. To address the long-term issues of Children’s services a programme of improvement is currently underway.

A report to the council’s Cabinet meeting on 28 September sets out the first financial forecast of 2023/24 of a projected overspend of £13.5m and outlines initial actions expected to reduce this to £9.5m. Further action is in hand to respond to the financial challenges the council is facing to ensure that spending is brought within the resources available.

Areas where action is already being taken to address these cost pressures include restrictions on the purchase of non-essential items, a reduction in the number of interim and agency staff, restrictions on the recruitment of permanent staff.

A review of services is also underway to ensure that the way they are delivered offers the best value for money.

Despite these significant financial challenges, the council remains financially stable and we are committed to reducing the cost pressures as soon as possible.

Cabinet meeting papers