Yesterday (Monday 2 November), we published forecasts for the council’s 2026-27 budget, which was set back in February 2026 by the previous Conservative administration.
These forecasts show that if we continue as we are, we are heading for a £11 million overspend by the end of this financial year.
What’s even more sobering, is that there is very little left in our reserves to absorb this overspend.
This is a stark warning that we cannot continue on the course set out by our Conservative predecessors. Maintaining the status quo will not be enough to address the challenges ahead.
That is why we are taking decisive action now, to put this council back on a strong financial footing and deliver for Suffolk Communities.
We have instructed our officers, with immediate effect, to put a freeze on all recruitment. We are also tightening spending controls and putting much more stringent checks in place to challenge every pound we spend and eliminate all non-essential spend.
We have tasked any services forecasting an overspend to set out clear plans to bring spending back under control and avoid further financial pressures.
Finally, we have been able to repurpose £7.3 million from reserves that had been set aside for other purposes to fund the forecast overspend. This will balance the books for now, but it leaves very little room to deal with future financial challenges. Our remaining reserves will be just £1.5 million above the level considered prudent for a council of our size and risk.
When we took office in May, we promised to do things differently. And we are.
We have already halted the Government’s decision to split Suffolk into three through its Local Government Reorganisation plans, saving taxpayers from the unnecessary and costly upheaval of reorganisation.
We are embracing innovation and technology to deliver services more efficiently, making better use of taxpayers’ money. By finding smarter and more cost-effective ways to do things, from maintaining roads to cutting bureaucracy, we can direct more resources to the services people rely on most, including adult and children's social care.
And we are finding more cost-effective ways of working, by slashing waste, securing better value from suppliers and challenging how public money is spent.
We also promised that we would be honest about the challenges we face. That means being transparent about how decisions are made, how money is spent and how the council is performing, so residents can understand the choices we make.
These financial challenges are not unique to Suffolk. Local councils are facing pressures like never before.
Rising demand, high costs, and funding from central government not keeping pace has created a perfect storm of sustained financial challenges, in particular for social care and SEND.
Earlier this year, the Local Government Association warned of a £7 billion funding gap in the next 3 years, suggesting that councils will face additional cost pressures of up to 22 per cent of their current spending, simply to continue operating at existing service levels.
And with the Chancellor’s Autumn budget doing nothing to address the funding crisis Local Authorities are facing, there will inevitably be tough decisions ahead.
But we will not shy away from those choices. We are ready to drive efficiencies and reshape the way we work so that every pound goes further.
By prioritising the services that make the biggest difference to people’s lives and transforming the way we deliver them, we can ensure services remain effective and financially sustainable.
As we look to set this administration’s first budget, early next year, every decision we make will be about prioritising frontline services, delivering better value for taxpayers, and putting Suffolk communities first.
