Walsall Council’s overspend at £33.5m last year as children’s services costs spiral
Walsall Council spent £33.5m more than expected from its revenue budget during the last financial year.
The figure was revealed in the pre-audit outturn for 2024/25 presented on Wednesday, June 18, at the authority’s cabinet meeting.
Leader of Walsall Council, Councillor Mike Bird said the report ‘doesn’t make the best reading’ but is ‘better than most council’s across the country’.
It was noted in the report that the majority of the revenue overspend had been offset by using the council’s earmarked reserves from previous years, as well as £11.39m of cost saving measures.
After using those savings and cost-cutting actions, the council still ended up £1.89m over budget, which is 0.24 per cent of its total revenue expenditure.
The council’s spending is split into two types, revenue and capital. Revenue spending covers day-to-day costs like employee wages and service delivery, while capital spending involves long-term investments in assets like buildings and infrastructure.
On the capital spending programme, the council actually had an underspend of £4.55m, and £64.79m worth of projects have been pushed into this current financial year (2025/26).
The cabinet report states that the upcoming spending will mainly fund technology projects, subject to approval.
The report also highlighted that the biggest financial risk facing Walsall Council is the Dedicated Schools Grant, a type of government funding ring-fenced for schools and children with special educational needs.
In recent years, more children have needed this support and by the end of 2024/25, Walsall Council was £32m short in this part of the budget.
That shortfall is expected to keep growing every year, reaching a predicted £117.49 million by 2027/28.
The council says it has created a five-year plan to try and manage the problem, but has continued to call on the government to provide a multi-year settlement.
Leader Councillor Mike Bird, also the portfolio holder for governance and finance, said a national reform is the ‘can that keeps getting kicked down the road’.
Also approved at the meeting was the write off of £158,581.80 of unpaid debts to the council, because it’s unlikely they will ever be collected.
The debts have been written off due to settlements, poor communication, death, or companies going out of business.
In response to the report, Councillor Mike Bird said: “Finance is always a good talking point, and always a problem.
“I’ve said many times that if you don’t control finance and legal, then quite honestly you are in some serious trouble.
“Social care and children’s services is a needs-led and statutory requirement which leaves us in no position except to do what we have to do from a statutory point of view.
“As far as I’m concerned, it doesn’t make the best reading but it’s probably better than most council’s across the country.”
Deputy leader, Councillor Mark Statham added: “It would be remiss of me not to call on the government and treasury ministers to critically review the long term financial settlement.
“We see excessive growth in SEND and subsequent home to school transport, and we’re looking for something flexible that reflects increases in demand.
“It’s absolutely imperative moving forward that the government ministers recognise a multi-year settlement that reflects the constraints we have at the moment.”
