Hertfordshire County Council is forecasting a £3.1m 'underspend' on its 2024/25 services budget – after the inclusion of a £20m contingency.

The authority had initially set a revenue budget totalling £1.119bn, which was increased to £1.169bn over the 12 months.

That was used to run a range of services that include services for adults and children, highways, public health, trading standards and the fire and rescue service.

Data presented to the latest meeting of the council's cabinet shows that at the end of the 2024/25 financial year, the council is now forecasting a £3.1m 'underspend' overall.

That includes the use of £20m within the budget that had been earmarked as 'contingency'.

According to the report, the largest overspends within the 2024/25 budget overall were in adult disability services (£11.5m), primarily related to supported living services, and placements for looked-after children (£13m).

Demand and complexity of need in social care services are said to have been "far higher" than in previous years.

And in the last three months of the financial year, the report says financial controls were "tightened" in social care services, which helped to "prevent, reduce and find mitigations where possible".

Commenting on the revenue budget overall, the report states: "Like many upper-tier councils across the country, we are facing significant increases in demand and complexity of need across social care services.

"While we are not in the same position as some other councils who have declared financial distress and are receiving exceptional government support, we have and will continue to take proactive steps to maintain our position and reputation as a responsible and well-run organisation with strong financial management.

"In the last three months of the financial year, proactive financial management has been able to reverse the projected overspend into an underspend position.

"The continuation of stronger financial controls will be a necessity to ensure the 2025/26 and all future years' budgets remain sustainable."

According to the report, in 2024/25 the council delivered £41.7m of the £46m of savings that had been planned – equivalent to around 90 per cent.

But it says the forecast is for most of the savings unachieved in 2024/25 to be delivered by 2027/28.

In addition, it was reported "proactive action plans" delivered a further £10m of savings during the 12 months.

A spokesperson for Hertfordshire County Council said: "The council prides itself on delivering services within the scope of funds allocated as part of the budget setting process.

"We are pleased that the current forecast shows that we will deliver an underspend against the baseline budget and previously agreed contingency."

Meanwhile, the report also records that the schools' budget has overspent by £8.52m in 2024/25, as a result of an overspend of £12.34m in the high needs budget.

According to the report, the budget – known as the 'dedicated schools grant', had been approved with a planned deficit of £18m.

It says the spend is £26.5m higher than the level of funding received for 2024/25.

By the end of 2025/26, the report suggests that the deficit will have increased to £81m. And it suggests the associated borrowing costs in 2025/26 will be £2.59m.

By the end of 2028/29, it estimates the cumulative deficit will have reached £387m, with borrowing costs of £16.5m.