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Extra £25 million cost facing council chiefs due to soaring inflation

Staffordshire County Council looks set to have to fork out an extra £25 million over the next financial year due to the impact of soaring inflation.

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Finance bosses said the sum had been added to the authority's predicted costs for 2023/2024.

And they have warned that – despite being expected to balance the books over the period – there are some tough choices on the horizon.

Councillor Ian Parry, cabinet member for finance and resources, said: "We are a well-run, stable authority that continues to invest in the future while supporting those who need help now. So we will balance our books for the coming year, partly helped by the Government postponing the adult social care reforms for two years, but there is a feeling that serious challenges are just around the corner unless something changes.

“We are still waiting for a fairer way to allocate grant funding to councils and we cannot leave local taxpayers to bear the funding of adult social care – we still need a sustainable long-term solution at a national level.”

The authority has earmarked around two-thirds of next year's anticipated £587m net budget for the provision of social care for the elderly, and for supporting vulnerable children and young people, with other parts of the budget being used to maintain investment in the county.

The combined cost of adult social care and protecting vulnerable young people means that for every £10 the authority spends, £3.50 remains for highways, libraries, country parks, recycling centres and other services.

Councillor Parry added: “We have taken many steps to deliver support differently, often seeking to reduce the need for costly complex services with early intervention where it is safe and practical to do so.

“And we continue to invest in supporting businesses big and small to provide jobs in Staffordshire, but the fact remains that with an ageing population and the demands upon us we will have to think hard about what we do for 2024/25 and beyond.”

Final decisions, including the proposed council tax, will be taken in the New Year once a final settlement from central Government has been provided.

That settlement is expected to confirm that local authorities can raise their council tax to 4.99 per cent without a referendum – the figure comprising 2.99 per cent for general purposes and two per cent ring-fenced for social care.