Wiltshire Council Forecasting Overspend of £6.6m for Financial Year

Wiltshire Council has published its second-quarter revenue and capital budget monitoring reports for the 2025/26 financial year, as it continues to face and respond to budget challenges.   

The council’s net revenue budget for 2025/26, approved by Full Council in February 2025, stands at around £527m. This budget underpins essential services for residents, businesses, and communities across Wiltshire, and supports the delivery of the council’s priorities.  

As of the end of September 2025, the council is forecasting a net overspend of approximately £6.6m – representing 1.3% of the total net budget. This is a forecast, not an actual overspend, and shows little change on the first quarterly report, with a slight increase from that position, which was around £6.5m. The council is legally required to deliver a balanced budget. It states that it will continue to rigorously control costs and make savings over the coming months to ensure the budget is balanced by the end of the financial year. 

The primary pressures continue to be within adult and children’s social care services. These are being driven by the complexity of the support required by people.

Inflationary pressures, which have not eased as anticipated by the Bank of England, have also contributed to the financial strain.

While most council services are managing within their adjusted budgets, the recent changes to Employers' National Insurance rates and thresholds have created additional challenges and impact, particularly felt in adult social care, as this affects short-term and emergency contracts that occasionally need to be set up at short notice, as well as existing long-term agreements.  

To address these pressures, the council continues to implement and build on a range of cost mitigation measures, including: 

• Managing staff vacancies effectively with appointment decisions being reviewed and only being authorised at the most senior levels
• Restricting non-essential and discretionary spending 
• Where possible, accelerating and bringing forward into this year savings proposals originally planned for future years
• Utilising earmarked reserves designated to support adult social care, including:
  • £84,000 from the Latent Demand Reserve 
  • £90,000 from the Streamlining Adult Social Care Grant Reserve
  • £400,000 from the Public Health Grant Reserve 

The cost pressures in adult social care are not being driven by a rise in the number of people receiving adult care-funded support. It is the complexity of needs that has increased, the meeting of which is more expensive. This includes young people transitioning from children’s services, people with autism and learning disabilities, and older adults with dementia and other health conditions. 

Children’s services are also under pressure. While the number of children in the council’s care remains below that of its statistical neighbours, it exceeds the council’s original budgeted figure. As of September 2025, there were 499 children in care, compared to a budgeted figure of 453. That increase means real cost pressures, but the council say that looking after these children is a priority. 

One ongoing risk is the uncertainty surrounding the sustainability of High Needs education and its funding, with expected national reforms further delayed. This is related to providing support for children with high special educational needs, and the council says it will wait for further national updates on this.  

The council also continues to closely monitor its savings target, set for 2025/26, which was approximately £15m. Around £3.4m of the savings have been made, with another £7.8m expected to be saved by the end of the year, with the council looking at what else can be achieved, ensuring steps are taken to mitigate the risk of not reaching the target by identifying additional savings to replace those under threat of not being realised.  

Cllr Ian Thorn, Wiltshire Council Leader, said: “Any forecast overspend is not acceptable and must be rectified by determined and vigorous action. We remain committed to delivering a balanced budget at year end despite significant financial pressures, particularly within vitally important social care services.

"A combination of issues such as continued high inflation and national insurance contributions create a perfect storm of tough financial pressure in areas where these key care services need to be regularly procured and fully staffed. Even though the majority of our financial challenges are being felt across specific areas, we work as one council and one team of Cabinet and officers at Wiltshire. We are actively reviewing savings plans, strengthening cost controls, challenging expenditure as to whether it is really necessary, staying very closely engaged with the areas facing the greatest pressure and ensuring our financial forecasting is as accurate as it can be right across the whole organisation.  

“While the challenges we face are mirrored by councils throughout the country, the significant actions we are taking reflect our determination to deliver real value for money, long-term financial sustainability and protect vital services for our communities. 

“During our recent public consultation events on next year's budget, colleagues and I have been heartened by the really interesting and constructive conversations we’ve had with so many residents and the large numbers also participating online. It is clear that residents recognise the challenges we face and the tough choices that will have to be made.

"So, residents' feedback on their priorities and perspective on what is important to them is really important. So are the conversations we have had at staff drop-in sessions where council colleagues have put forward their ideas to save money, create greater efficiencies and generate extra cash. All these ideas are very welcome, so we will look at them, seek out good practices from others and build positive partnerships to find innovative and creative solutions to meet the challenges we face.”