Hertfordshire is heading for an overspend of £4.2m in its budget, which officers say is a "positive position" compared to the national landscape.

A meeting of the county council's resources and performance cabinet panel met on Thursday, October 2, where it reviewed the finance budget monitor for the first quarter of 2025/26.

A report prepared by Scott Walker, head of corporate finance, recommended the approval of £21.2 million 're-programming' of the capital programme in light of a £13 million underspend in this area.

Adressing councillors in the chamber, Mr Walker said: "Obviously, an overspend is an undesirable position to be in, but we feel it is a manageable position we are currently working through, and we're trying to work with all the departments to move all of their positions within the budget for the year.

"In comparison to some of our nearer neighbours and probably this institution 12 months ago, this is quite an encouraging position to be in and one which we will work to reduce throughout the financial year.

"In terms of the position we've included in this report, the biggest pressures are in our resources department. A number of these are sort of savings that, unfortunately, haven't materialised. One of the biggest examples is the purchase of an office building in Apsley, which unfortunately was taken off the market and therefore that saving hasn't been able to be delivered.

"The next biggest financial pressure is seen in adults. On a budget of over half a billion, they have got a small overspend which they are trying to manage at the moment.

"There are some demand pressures in that area, in particular, in adult disability services. In comparison to the budget we set, demand has been slightly higher and a bit of an increase in the complexity of care and packages that are being issued throughout this year. But that continues to be managed, and mitigation is in place to review all the high-cost packages in the area."

Mr Walker said focus continues on the planned £42 million savings programme this year, 96% of which is on target to be achieved.

Cllr John Graham asked about lobbying of the Government and was told by the chairman of the committee, Cllr Chris Lucas: "We are constantly lobbying Government all the time on a number of different matters."

Cllr Lucas added: "You are well aware of the fairer funding review and the fact that debt hampers and disadvantages Hertfordshire significantly… I know for a fact that we are lobbying all of our local MPs and the various ministers of state.

"We are constantly in regular contact with the Government and our local MPs on all matters regarding our funding, of which higher needs funding is one of them."

Scott Crudgington, executive director of resources, said: "On the point of debt, there is some work we are doing with our health colleagues as they are one of the key offenders in relation to outstanding debt for this council.

"Although I have sympathy and I'm sure we owe them money as well, we need to make sure that the sizeable debts that are due to the council are recovered in a timely manner. We're going to be raising that at the highest levels within the health service."

The report stated: "The net revenue budget of £1.2bn is forecasting an overspend of £4.2 million (0.4%). This assumes no use of the £10 million contingency. The forecast includes the successful delivery of 96% of the £42 million saving programme.

"In comparison to the national landscape, a relatively small forecasted overspend is a positive position to be reported.

"However, there has been a continued upward trend within social care services since the forecasts were produced for this report, particularly within adult disability services and looked-after children, where both the number and cost of care packages are rising.

"If these trends persist, they could worsen the council's financial position in future quarters, especially if planned mitigations fail to deliver the required impact.

"The approved budget for the school's high needs funding block included an in-year deficit of £52 million. The in-year forecast is in line with the approved budget, which will result in an accumulated deficit in the region of £77 million by the end of the financial year.

"The capital programme is forecasting an underspend of £13.8 million for 2024/25 and re-programming of £21.2 million into later years. The impact of the underspend and requested re-programming has been built into the quarter forecast included in this report."

After discussion, the panel voted to recommend that the cabinet approves the £21.2 million capital reprogramming.