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Rotherham Council is facing a budget black hole of more than £11m for the end of the financial year – including £4m of unbudgeted costs.

In a financial report to full council today (October 10), an overspend of £11.4m has been forecast for the financial year 2022/23.

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Council services such as children’s services, adult care, housing, public health and regeneration and environment have forecast an overspend of £7.4m all together, external factors have put an extra £4m pressure on the budget.

Rotherham Council is facing a budget black hole of more than £11m for the end of the financial year - including £4m of unbudgeted costs.

The £4m costs have been put down to the financial impact of the war in Ukraine, inflation, and energy price increases.

The report states that he council “faces significant financial pressure” as a result, and that the current period of high inflation is expected to last around two years.

Whilst the energy price rises and inflation will impact the Council’s costs in theprovision of services there will be some mitigation in future years by increased core funding as business rates income is indexed to the rate of inflation,” adds the report.

Which services are putting the biggest strain on Rotherham Council’s budget?

Children and Young People Services – £4.3m forecastoverspend

A £4.3m overspend is projected by the Children and Young People Services, which had 555 looked after children in its care – including 29 unaccompanied asylum seeker children.

Residential care for loked after children is expected to go £3.9m over budget, due to a combination of the increase in placement costs (£0.8m), a reduction in the estimated residential step downs (£1.7m) as well as a reduction in the contribution from Dedicated Schools Grant due to a reduction in education placements (£0.7m).

Regeneration and Environment Directorate – £3m forecast overspend

The overspend is due to pressures in home to school transport of £1.6m, which is due to an increase in the number of new passengers and fewer contractors in the market leading to increased prices.

Parking services saw a loss of £400,0000 during the pandemic, and the amount of household waste processed is up, leading to a £300,000 overspend.

Central Services – £10.5m forecast overspend

It is currently estimated that the impact of inflation and in particular energy price increases will be £4m above available budget.

A two per cent pay increase for council staff will be £6.5m over budget,

Council facing £11M budget blackhole – including £4m unbudgeted costs from war in Ukraine, inflation and energy price increases