Latest News | 4 February 2025
Council targets ‘financial stability’ with budget proposals



Derby City Council has said it is aiming to achieve “financial stability” going forward after outlining its budget proposals with Marketing Derby Bondholders.
At a Talking Business Live session held online and attended by 50 people, the city council shared details of its budget plans for 2025/26.
The session, which was staged in partnership with East Midlands Chamber, was held as part of a public consultation, which began back in December.

It heard how the council is proposing £10 million of cost savings to help offset large rises in the costs of social care – but that it still had “significant ambitions” for Derby.
The session began with Scott Knowles, the chamber’s chief executive, who gave an overview of the regional economic landscape, drawing on data from the chamber’s latest Quarterly Economic Survey, which measures business performance, confidence and sentiment.
He said the survey, which included business responses taken from the final quarter of 2024, painted a “gloomy” picture – but stressed that data from the first three months of this year would provide a truer measure of where the local economy is at.
He said: “The data shows that everything has gone backwards – but the concern is the scale at which it has gone backwards. The survey shows double-digit reductions, which is worrying.
“However, much of this could be an immediate reaction to the Autumn Budget Statement and the increased tax burden. So, the most important data will come from the quarter we’re in now.”
Alison Parkin, the city council’s director of finance, then gave a detailed presentation on the proposed 2025/26 budget, which will be put to cabinet on 12 February and then to the full council on 26 February.
She outlined the cost pressures facing the council – including the huge rises in adult social care and children’s services costs.
She told the session: “Financial stability is our target, while at the same time replenishing our reserves.
“We are facing £39 million of pressures, which is why we are proposing £10 million of savings, which includes a reduction of just shy of 100 full-time equivalent posts.
“Looking ahead, we intend to bolster our reserves to £15.7 million – and we have a £400 million capital programme over the next three years.”

Heather Greenan, the council’s director of corporate management expanded on this by sharing details of its new Council Plan for 2025/28.
She said: “The council still has significant ambitions for the city. The new Council Plan sets out our priorities: to be a green city, to support growth, to increase resilience and create vibrancy.
“We want to build a Derby to be proud of that is an ‘inclusive’ city.”
Councillor Kathy Kozlowski, the city council’s cabinet member for government and finance, told the meeting: “We feel we have come up with a balanced budget – but one not without some pain.
“We feel positive for the city, but it is not without its economic challenges – nationally and locally.”
The meeting ended with a heads-up from city council chief executive Paul Simpson on the emerging Local Government Review, which could have a significant impact on the shape and structures of local authorities across Derbyshire.
He said it was important for Derby to work up its preferred options and promised to engage the Bondholder community in the process.
View a recording of the session below, or by clicking here.