West Northants Council must find £50m to plug next year's budget gap and warns choices won't be 'easy' or 'popular'

The authority has warned that the level of funding it receives has not kept up with the growing population and the continued rise in demand for services for vulnerable residents.

The £50m shortfall will equate to around 10 per cent of WNC’s overall budget.

The announcement comes after the authority has already shared that it is currently forecasting a £9.6m overspend in 2025/26 on its £431.8m budget. Pressures have largely risen from children’s and adults’ social care, temporary housing for homelessness and SEND school transport.

Speaking at a Cabinet meeting on Thursday September 18, Cllr Jonathan Harris, leader of the West Northants Liberal Democrat group, said there were some “alarming signs” in the budget that seemed to be amplifying. He asked the administration for reassurance that they were “getting to grips with it”.

WNC’s finance member Cllr John Slope said: “Since West Northamptonshire Council was created, £115m in savings have already been delivered, so each year that task becomes harder because the easy options are long gone.

“That’s why we should consider 2026/27 as potentially our most difficult budget to date. Some of the choices we will need to make will not be easy and may not be popular.

“We will be honest with residents about the scale of the challenge and we will continue to protect essential services wherever possible and while delivering value for money.

“These are serious challenges, but they are not insurmountable. We will balance the books, we will be open about the tough decisions and we will ensure West Northamptonshire remains financially stable for the years ahead.”

The cabinet member added that the council would look to review fees and charges for discretionary services and look across the authority to find efficiencies to help bridge the gap.

Despite the scale of the challenge, Cllr Slope noted a series of other years that WNC had faced similar gaps, saying it wasn’t necessarily a “unique scenario”.

Last year, the previous administration announced that it had been able to eliminate a £53m funding shortfall to set a balanced budget for 2025/26. This included a 4.99 per cent rise in council tax, as well as efficiencies and £24m of in-year saving proposals.

Government funding reforms, which are likely to see multi-year settlements being introduced, will be announced after the draft budget setting process in late November to December this year, however the authority has said it cannot rely on that alone.

The council is also predicting a massive £31.1m overspend in the Dedicated Schools Grant in this year, which is kept in a separate funding pot from the general fund.

The significant pressures have come solely from the High Needs Block, where WNC has said it has seen a 70 per cent increase in education, health and care plans in the last four years as well as rising costs due to inflation, and the current lack of school placements.

Its problems are not out of keeping with the national picture, with local authorities in England expected to have a cumulative £5bn SEND deficit by March 2026. WNC remains in the bottom quartile in terms of the high needs block funding per pupil.

WNC will be developing proposals for its future finances over the coming months, with the draft 2026–27 budget due to go to Cabinet in December. Residents will then be able to share their views through a public consultation.

WNC Leader Mark Arnull admitted that tough choices lie ahead, but that the authority’s ‘top priority’ will always be protecting essential services and continuing to deliver value for money.