Wiltshire Council forecasts £6.5m overspend but reaffirms commitment to sound financial planning

Wiltshire Council is forecasting a £6.51 million overspend for the 2025/26 financial year, equivalent to 1.2% of its net revenue budget, according to its first quarterly budget monitoring report.

The council says cost-control measures introduced last year remain in place, and further actions are being implemented to manage the early-year variance while continuing to deliver essential services.

The report follows a revelation in June, reported by the Local Democracy Reporting Service, that the council had uncovered a £4.85 million ‘black hole’ in its finances, primarily driven by rising costs in adult social care and placing children into care. At the time, the new administration described the deficit as an ‘unwelcome inheritance’ from the previous council.

The first-quarter report highlights ongoing pressures, including higher inflation, changes to Employers’ National Insurance rates, and increasing demand for complex care in both adult and children’s services. Nevertheless, the council says its preventative approach in adult social care has helped keep the number of people requiring funded support steady.

Other financial developments include a £1.5 million operating surplus on the Housing Revenue Account, successful receipt of National Landscapes grant funding, and strategic use of reserves to support initiatives in the arts and air quality.

The council is also progressing its capital programme, with £30.2 million already invested in key infrastructure and service improvements. This includes £28.5 million in schools, £44 million in council house building and refurbishment, over £42 million in highways and footpaths, nearly £10 million on the A350 Chippenham Bypass, and £21 million in leisure provision.

Cllr Gavin Grant, Cabinet Member for Finance, said, “This early forecast reflects our commitment to responsible financial planning providing both good value for money and outstanding services for our residents, plus our ability to adapt in a changing environment. It is vitally important we closely monitor finances against a very challenging backdrop of spending pressures. Like all local authorities, we are facing increased costs, and we want to balance the books while ensuring we continue to provide high-quality services that everyone deserves.”