Rotherham Council scrambles to find £5m to balance books
The council is under pressure due to the cost of adult social care and children's residential placements
Rotherham Metropolitan Borough Council (RMBC) finance bosses say they need to find more than £5m before the end of the financial year to balance its books.
The £5.3m overspend is attributed to increased demand for children’s residential placements, adult social care services, home-to-school transport, and staff pay increases.
As of September, RMBC has recorded a £16.2 million overspend within its departments, with the largest contributors being within children and young people’s services (£5.6m), adult care, housing and public health (£5.6m), and regeneration and environment services (5.1m).
Additional pressures have arisen from rising costs in social care and homelessness services, as well as higher vehicle and staffing expenses in waste management. Despite the financial challenges, RMBC has set aside contingency funds to address some of these pressures.
Due to savings efforts, the council’s forecast overspend has improved from £6.1 million in July to £5.3 million, although ongoing inflationary pressures continue to weigh heavily on the budget.
While inflation has dropped to 1.7 per cent, the council’s overall cost base remains high due to market price increases, especially in social care.
The council is also working on a £9.9 million savings programme, although progress has been mixed. While some departments have made progress, savings in children’s services have been slower to materialise, with continued cost pressures on residential placements for children.
In children’s services, a £1.9 million deficit is expected in the special educational needs and disabilities (SEND) budget, largely due to rising costs and an increase in the number of pupils with education, health, and care plans (EHCPs). Additionally, a £2.1 million shortfall is forecast for the schools budget.
In adult care, housing, and public health, an overspend of £5.6 million is largely driven by higher-than-expected costs in adult social care and homelessness services. However, underspends in staffing and public health services have helped to partially offset the overall deficit.
The regeneration and environment directorate is also reporting a £5.1 million overspend, mainly due to increased costs in home to school transport and waste management services.
The parking services department is also reporting a £195,000 shortfall, mainly due to reduced income from parking fees in Rotherham town centre, impacted by fewer visitors.