Plymouth City Council is set to make a direct appeal to government ministers for a significant cash injection, as it grapples with a severe financial crisis driven by rocketing demand for vital services.
Mounting Pressures and a Multi-Million Pound Shortfall
The authority faces the daunting challenge of finding £17 million in savings to balance its books for the coming year. To avoid this, it will formally request an additional £25.7 million in funding from the Government. This urgent need is primarily driven by escalating costs in social care, support for children with special educational needs and disabilities (SEND), and homelessness services, which together now consume three-quarters of the council's entire budget.
Despite a recent shift by the government to multi-year financial settlements for local authorities—a move intended to aid long-term planning—the provisional funding allocated to Plymouth has failed to keep pace with these mounting pressures. The government's measure of core spending power shows a £15.9 million increase for Plymouth in 2025/26, but this calculation assumes the council will raise council tax by the maximum permitted 2.99%.
Where the Money is Needed
During a cabinet meeting on Monday, Councillor Mark Lowry, the cabinet member for finance, detailed where the extra £25.7m is desperately required:
- £9.4 million for children's social care and placements.
- £11.1 million for adult social care.
- £2 million for SEND home-to-school transport.
- £1.6 million for the Dedicated School Grant deficit.
- £1.2 million for short breaks provision.
- £623,000 for homelessness prevention.
In response, the council is proposing a series of savings measures, including 'invest-to-save' initiatives like creating an in-house therapy team and council-run children's homes. These moves aim to reduce dependence on costly independent care placements. The authority is also reviewing its debt and investment portfolios, which could free up a one-off sum of up to £9.7 million for the 2026/27 financial year.
Leadership and Long-Term Challenges
Chief finance officer David Northey, who has delayed his retirement for a second time to steer the council through this process, acknowledged "some difficult decisions" were needed to produce a balanced draft budget. He welcomed the three-year settlement but stated, "It would have been better if they had given us more growth but we can start planning and cutting our cloth."
Council leader Tudor Evans, returning after illness, noted that after 15 years of restrictive annual settlements, the situation had improved slightly, with "belts a bit looser than they have been in the past." However, he emphasised the council was "still in a straight jacket" financially. He pointed to positive economic signs, including a 6% rise in city centre footfall, and expressed confidence in attracting commercial investment through major projects like the Armada Way regeneration.
Councillor Lowry reaffirmed the council's commitment to its vision for Plymouth despite the challenges, focusing on job creation, affordable housing, and community safety while protecting services for the most vulnerable. The draft budget, which includes a proposed council tax rise of 2.99% plus a further 2% for adult social care, will be scrutinised over two days by councillors before returning to cabinet in February.
