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17
Aug
Rise in number of children in care adds to council's £10 million overspend
A rise in the number of children in care has contributed to North Yorkshire Council's forecast overspend of more than £10 million for the financial year, official figures reveal.
According to its first quarterly performance and budget report of the year, the council has recorded a net overspend of £10.27 million for 2026-27. The report will be considered by the authority’s executive when it meets on Tuesday (August 18).
The report states:
The council is seeing pressures across the board, particularly in children’s services.
It adds that work is being undertaken across all directorates to introduce measures which will “reduce costs where possible and achieve a more favourable position by the end of the financial year”.
Hardship, poverty and complex needs
The report revealed that the authority is facing an £11.7 million overspend on placements for children in care amid a sharp increase in the number of youngsters requiring support.
Officers say growing family hardship, child poverty and increasingly complex needs, including mental health problems, have contributed to the rise.
At the end of the first three months of the financial year, 654 children were in the council’s care, compared with 613 at the beginning of April.
The council says the cost of some individual care packages is particularly high, with 21 children currently receiving packages costing more than £500,000 a year each.
Housing revenue deficit
The pressure on the council’s general budget comes alongside a separate forecast £4.37 million deficit in the housing revenue account, which covers the authority’s council housing activities.
The losses have been blamed on a shortfall in rents linked to void properties while repairs are carried out, and on the repair and maintenance budget, with increased outsourcing to external contractors and higher material costs.
The report also reveals that the council is having to find £938,000 because of additional costs implementing a new finance system.
Capital investment continues
Despite the revenue pressures, the authority is continuing with its programme of capital investment.
The council expects to spend £297.4 million on capital projects during 2026/27. Councillors are also being asked to approve several additional allocations from reserves, including £800,000 for the Catterick Garrison Levelling Up town centre redevelopment scheme due to increased costs.
Other proposed allocations include £200,000 for fixtures and fittings at Harrogate Convention Centre, £361,000 for work following a landslip at Royal Albert Drive, Scarborough, and £175,000 for pay-on-entry technology at public toilets.
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