Derby City Council has reported a forecast underspend of £1.318 million for the first quarter of the 2025/2026 financial year. This marks significant progress in the Council’s ongoing efforts to achieve long-term financial stability.
The underspend comes after the implementation of effective financial management and careful budget setting, despite the challenges facing local governments nationwide. The Council has also made notable investments in essential services, with approximately £40 million allocated for this financial year, while working to restore general reserves to £15.8 million. This will bring reserves to the highest level in several years, representing 4.54% of the revenue budget.
In addition, the Council is on track to meet its £9.861 million savings target for the 2025/26 year. The commitment to rebuilding reserves forms part of Derby’s broader strategy to create a more resilient financial position, ensuring the city is well-prepared for any future economic shocks.
Although positive, the report acknowledges ongoing pressures, particularly in adult social care and services for children with special educational needs. However, these costs are being offset by savings in other areas. The Council remains focused on maintaining responsible financial leadership to ensure continued service delivery and stability.
Looking ahead, Derby City Council is preparing for potential changes linked to Local Government Reorganisation across Derbyshire. The financial position will be further reviewed at the Cabinet meeting on 6 August.
