NEWSROOM

At a meeting of the Council’s Cabinet next week, a financial monitoring report will outline in-year pressures on Council budgets which are being managed through contingencies and in-year savings plans to enable the Council to stay within budget.

Pressures in adult social care make up the most significant area of challenge for the Council with the report forecasting it will need an additional £14million to cover the costs of providing adult social care packages through to the end of March 2026 – this is in addition to £77million committed at the start of the year in its budget to fund adult social care.

Telford & Wrekin Council has a long track record of sustained, strong and effective financial management and has taken difficult decisions to deliver £181.7m of savings over the last 16 years to ensure the organisation is efficiently run.

From reductions of 50% in senior management staff, to saving £2.3 Million in running costs from disposal of Council buildings and working hard to ensure one of the highest Council Tax collection rates in the country, the Council has successfully delivered balanced budgets for over 16 years and has consistently received a clean bill of health from external auditors around the Council’s accounts for many years.

However, despite continuing to work to reduce costs on adult social care budgets, which successfully saved more than £6m last year, the Council is anticipating the costs of what is a national social care funding crisis, will put strain on its budgets at the end of this financial year.

Councillor Zona Hannington, cabinet member for finance, governance and customer services, said:

“Last year through hard work and innovation we delivered savings across adult social care totalling £6million. This work is continuing to ensure we are as efficient as possible but factors outside of our control, including the need to care for an ageing population with people living longer, continue to see the costs of care rise.

“We continue to manage budgets and we will continue to monitor the position through to the end of the financial year in March but we are forecasting around £14m additional funding being required to meet demand.

“Due to our strong record of financial management over so many years, we will utilise contingency budgets and seek further in-year efficiencies to meet this cost with a view to delivering a balanced budget at year-end which is something we have achieved for the last 16 years.”

Despite the financial pressures, the Council is clear that it cannot and will not compromise on the level of care elderly residents and the most vulnerable in the community deserve.

Councillor Kelly Middleton, cabinet member responsible for adult social care, said:

“Our role as a Council is to care for our community and despite the rising costs, people must remember that we are talking about somebody’s mother, father or grandparents and they all deserve the right care and most appropriate care to meet their needs. We will continue to protect, care and invest whilst working hard to do what we can to manage budgets as effectively as possible.

“Ultimately wherever possible, our aim is to support people to live independently for as long as possible but we need to ensure people are receiving the right care and this year we have seen an increase in demand for older people and for those with dementia and those requiring specialist care.”

The financial pressures are reflected at a national level through the Local Government Association White Paper which reports that the vast majority of councils are overspending and having to use their reserves to fund the gap. The Association of Directors of Adult Social Services’ (ADASS) has stated that 80% of authorities overspent on adult social care budgets in 2024-25, marking the highest overspend for the sector in over a decade.

As 2025 LGC Council of the Year and as an authority rated Good by the Care Quality Commission, council leaders in Telford have also vowed to be a leading voice for local government and continue conversations at a national level in relation to funding for adult social care which has been impacting councils across the country for well over a decade.

Councillor Hannington added:

“We’re rightly recognised as a high-performing Council and we are proud to have delivered services within budget for over 16 years as well as being one of very few councils to receive a clean bill of health in relation to our finances from external auditors for many years.  

“Whilst we’re seeing significant pressures in adult social care, thanks to our strong track record of financial management, we are still working to remain within budget through using budgeted contingencies and making in year efficiencies.

“We appreciate that the vast majority of councils may not have contingencies to turn to and are facing the reality of using all their reserves ahead of being effectively bankrupt and we will continue to speak with Government at a national level around revised funding formulas to tackle this well-documented national issue.”

The Council’s Cabinet will receive the financial monitoring report at its meeting on 6 November.