Bolton Council is forecasting an overspend of approximately £22 million for the fiscal year, driven largely by escalating demands in children’s social care and special needs education transport. According to the borough treasurer, Graeme Wilson, the council is currently facing expenditure of nearly £500,000 more per week than anticipated.
During a recent cabinet meeting, Wilson outlined the financial pressures affecting the council’s budget. He stated, “Unfortunately we have to report that the council is forecasting a £22 million overspend at year end. This is made up mainly of very significant demand pressures in children’s social care and in special education school transport.”
To mitigate the financial shortfall, the council plans to utilize around £6 million from departmental reserves. Wilson warned that if the overspend reaches the projected level, the council would have “no option” but to tap into their corporately held cash reserves. These reserves are primarily intended for smoothing budget-saving measures and addressing emergency situations.
The announcement of the overspend comes as the Local Government Association (LGA) has urged the Chancellor to ensure adequate funding for councils in order to support long-term investment in essential services including family support, child protection, and youth services.
Following the meeting, council leader Nick Peel emphasized the unpredictable nature of social services. “There could be a child, a Bolton resident that needs an extensive care package that could go into the hundreds of thousands of pounds. Individual cases can put massive pressure on our budget,” he explained.
Peel noted that local governments are permitted to run deficits in this area, unlike other sectors. He pointed out that while the previous government recognized the financial strains and allowed overspending, the current administration has continued this trend while also directing more resources into preventative services. “The more we do with young families and babies when first starting out in life, the more we can invest in those children. That would mean more money saved in the future,” he added.
The LGA has raised alarms over the increasing financial pressures faced by councils. Between 2022/23 and 2024/25, councils across the nation have overspent by an average of 14.2 percent annually on children’s social care, despite increasing budgeted expenditures. For the fiscal year 2025/26, planned budgets indicate a 10.1 percent increase for these services.
Councillor Amanda Hopgood, chair of the LGA’s children, young people, and families committee, echoed these concerns. She stated, “Councils want to do everything they can to support children and young people and help them to lead happy lives where they can thrive. However, these figures are a reminder of the huge pressures that councils are under to provide this lifeline of support.”
As the deadline for the upcoming budget approaches, there is a pressing need for decisive action from the Chancellor to ensure that councils like Bolton have the necessary resources to adequately support their communities.
