Cabinet member for finance Cllr Gavin Grant.

Wiltshire Council predicts almost £7m overspend this financial year

Jamie JonesSeptember 9, 20260 Comment0

AN overspend of almost £7 million is forecast for the 2026/27 financial year at Wiltshire Council, according to a new forecast.

The authority has issued its first formal financial update of the year, which revealed a predicted overspend of £6.7m, around 1.2% of its overall budget of almost £568m.

Finance chiefs said the forecast overspend, which will be put before councillors at a Cabinet meeting on September 16 as part of a review of spending between April 1 and June 30, included £1.2m of pressures that were not known when the 2026/27 budget was approved, including the final annual local government pay award for staff.

At the same point in 2024/25, an overspend of around £8.2m was forecast, while in 2025/26, it was £6.5m.

Corporate costs are forecast to be overspent by £2.95m at year end, mainly due to some “planned savings proving difficult to deliver and higher financing costs, adding further pressure to the council’s budget”, the council said.

Wiltshire Council overspend

Meanwhile, the authority said it continues to implement cost control measures, including “management of vacancies to control staffing costs, challenging non-essential and discretionary spending wherever possible, and carefully reviewing orders, commitments and expenditure plans”.

Higher staff vacancies than envisaged are also cited as reasons for the overspend, with the Local Government Pay Award for council staff of 3.3%, confirmed last month, reflected in future financial forecasts – higher than the 3% initially planned for.

Other increases in costs include an increased UK HMRC approved mileage rate for cars and vans travelling on council business – 55p per mile – which increased by 10p in April.

Areas forecast to overspend include adult social care services (£688k), with the council’s Transforming Adult Social Care (TASC) programme “starting to see positive results”.

Savings at the council – with a target of cutting £27.7m of spending in the year – has yielded more than £9.5m (34%), it said, with a further £10.2m (37%) expected.

Elsewhere, car parking income is exceeding expectations, the authority said, while planning services remain on target and council-owned solar energy installations providing extra income, helping “offset wider financial pressures across the organisation”.

As a result, the council intends to cut its capital spending – on roads, buildings and more – to £218.5m, from £260.4m.

Councillor Gavin Grant responds to Wiltshire Council overspend

Cllr Gavin Grant, cabinet member for finance, said: “There’s always a lot to unpack in our quarter one financial position, and it provides an important snapshot of where we’re headed and where we may need to make changes to drive even greater efficiency and value for taxpayers’ money.

“In recent years the council’s quarter one position has often included a forecast overspend, so while we’re certainly not comfortable with this position, and are in no way complacent about it, we know forecasts can and do change throughout the year as we maintain a strong focus on our finances.

“An overspend, whether forecast or actual, is something we take very seriously, and my Cabinet colleagues and I will continue to work closely with senior officers and our hardworking staff to drive financial improvements. There are areas where we can and will do better.

“The continuing uncertainty surrounding the Dedicated Schools Grant will remain one of the biggest financial risks facing councils until government provides much-needed clarity on its long-term approach. However, I’m encouraged by the progress we’re making in this area and by the positive response we’ve had from government so far on our plan.

“We remain a resilient council that is determined to build on the progress we’re making. The work taking place across both children’s and adult social care is beginning to deliver results, our income generation is performing strongly, and the amount of debt owed to the council has been cut considerably.

“We are also investing significantly in our capital programme, with a number of projects well on their way to contributing to a strengthened county that people want to visit, live, work and learn in. We’re always looking to do things innovatively, such as through our Wiltshire Community Lottery where we’ve been able to support good causes to raise much-needed extra money, enabling even more community-focussed projects to happen throughout the county.

“Residents and local business fully expect us to spend their money carefully and efficiently. This early forecast demonstrates both the challenges we face and the progress we’re making. We will continue to take the necessary action to ensure Wiltshire Council remains on a strong and sustainable financial footing, driving value for money while delivering the good quality services residents rightly expect.”

Before going to the next Cabinet meeting, the budget update will be presented to the Finance and Procurement Select Committee on September 10.