Wiltshire Council forecasts improved financial year-end position following £6.9m turnaround 

Wiltshire Council’s latest financial update shows a significant improvement in its forecast year-end position, with the authority now forecasting a small underspend by the end of the financial year. 

The council’s quarter three revenue budget monitoring, covering the position at the end of December 2025, forecasts a year-end underspend of around £245,000. This represents an improvement of around £6.9m compared to the previously reported quarter two year-end forecast overspend of around £6.6m. 

This is a forecast year-end position and not the final outturn. The council’s final financial position will be confirmed at the end of the 2025/26 financial year. 

Following year-end overspends forecast in the first two quarters of the year, the council implemented a range of cost control measures to help ease financial pressures. These actions have strengthened the council’s position as it moves into the final months of the financial year. 

Measures introduced include actively managing job vacancies, challenging and halting non-essential and discretionary spending, and reviewing commitments where appropriate. Alongside these controls, the council has maximised grant funding and has also seen positive income performance in several areas, including planning services, chargeable garden waste collections, and leisure services promotions. 

Despite this improvement, councils nationwide continue to face significant financial pressures. For Wiltshire Council, ongoing challenges include the rising cost and demand for care services, inflation remaining higher than anticipated, and increased employer National Insurance contributions. 

Several service areas reported an improved forecast position during quarter three, including: 

• Adult services (improvement of around £1.4m) 

• Commissioning (improvement of around £139,000) 

• Children and education (improvement of around £129,000) 

• Resources (improvement of around £407,000) 

• Information services (improvement of around £501,000) 

A number of services are also forecasting an overall underspend, including highways and transport, planning, economy and regeneration, environment, and leisure, culture and communities. 

The council continues to closely monitor its savings programme for 2025/26, which totals around £15.3m. To date, approximately £6m (almost 40%) has been fully delivered, with a further £5.5m forecast to be achieved by the end of the year. Work continues to identify further opportunities to mitigate any remaining risks to achieve its savings target. 

An update was also provided on the council’s capital programme, which currently totals around £197m. This programme supports investment in the county’s infrastructure, buildings and equipment. As project timescales can change, the overall programme value fluctuates throughout the year. Projects during 2025/26 include school building maintenance, the council house build programme, highways improvements, and the continued development of the new leisure centre in Trowbridge. 

In addition, the council published its mid-year update on treasury management. This shows the authority remains significantly under-borrowed, helping to reduce borrowing costs. However, higher interest rates and declining cash balances – particularly linked to the High Needs Schools block – mean this position will continue to be monitored carefully. 

Cllr Gavin Grant, Cabinet Member for Finance, said: “It’s vital for the long-term sustainability of the council that we live within our means and deliver value for money. I’m therefore pleased to see such a positive turnaround in our year-end financial forecast, which demonstrates that the decisive cost-control actions taken across the organisation are having the intended impact. 

“While the picture has improved, significant pressures remain and we are not complacent. We will continue to work vigorously, applying rigour to achieve a balanced position by the end of the financial year, without drawing on our reserves. 

“Looking after public money is both a privilege and a responsibility, and I am determined that every pound delivers value for money and supports, and where possible improves, the services residents rely on.” 

The quarter three update will be presented to the next Cabinet meeting on 3 February. The reports and agenda can be found at Meeting - Democratic Services - Wiltshire Council. 

Wiltshire Council has also published its 2026/27 budget proposals, setting out plans to spend £567m on vital services for residents, communities and businesses. Further details are available on the council’s website at Wiltshire Council publishes its 2026/27 budget proposals - Wiltshire Council.