Stoke-on-Trent City Council Warned Of 'Bleak' Finances As £6.7m Overspend Forecast

Stoke-on-Trent City Council is forecasting a £6.7m overspend this financial year, and councillors have been told its finances remain "bleak" despite a multi-million-pound government funding award.

The projected overspend for 2026/27 is set out in the council's first-quarter financial performance report, which went before the strategy and resources overview and scrutiny committee.

Most of the pressure comes from social care. Children's care placements are £4.4m over budget, with 1,068 children currently looked after by the council.

Adult social care is adding a further £6.3m of pressure because of rising demand, more complex needs and higher costs.

These are partly offset by underspends, including at the Hanford incinerator and on commercial rental income.

The warning comes even though the council has been awarded £9.14m of government transformation funding. Stoke-on-Trent was one of 14 councils to receive it.

The council has also been allocated more than £60m of exceptional financial support over three years.

Nick Edmonds, the council's corporate director for resources, told the committee: "It's really positive that we have that transformation funding, and it will make a difference. But I'm still really concerned about our financial position. Despite the changes in the funding formula, despite the significant steps that we've taken, the demand challenge is just not abating."

He warned that the position was likely to get worse in the second quarter of the year.

"It continues to be a very stormy and challenging financial position for us. I'd love to be able to come to you and say I think things will be better in quarter two, but I don't, I think it will be more challenging with the numbers that we're seeing," he said.

Councillors were told the council faces a "hard road and a slow burn".

Cllr Sarah Hill, cabinet member for finance, said the cabinet and council directors would meet on Friday 25 September to discuss next year's budget.

"We'll be looking at next year's budget and where we're going. It's a very difficult situation we're in, there's no getting away from it," she said.

Six Towns Daily will provide further updates if more information is released by Stoke-on-Trent City Council.