Warwickshire County Council has today approved its budget for 2025/26, alongside the medium-term financial strategy (MTFS) for the next five years.
The budget sets out the Council's commitment to protecting essential services and addressing key priorities despite ongoing economic challenges.
In the Council meeting held on February 6, Councillors approved the 2025/26 budget and the 2025-2030 MTFS. The medium-term financial strategy aims to maintain stable finances while ensuring Warwickshire continues to thrive as a sustainable community for both current and future generations.
Deputy Leader and Portfolio Holder for Finance and Property, Councillor Peter Butlin said:
“This budget comes at a time of considerable challenges, particularly from rising demand for services and market pressures. However, thanks to our strong financial prudence and long-term decision-making, we are in a position to navigate these challenges carefully. While uncertainty remains around the impacts of funding reform, devolution and policy changes, particularly in social care and education, we are taking a responsible approach to ensure that we are as well-prepared as possible for what lies ahead.
“As a local authority we have not shied away from making tough decisions, but we have done so with a focus on maintaining our financial sustainability over the medium-term. Our approach is to avoid short-term fixes that could undermine our long-term goals and also ensuring that we have clear savings plans in place. At the same time, we recognise the need for flexibility, as we continue to navigate an increasingly complex financial environment."
Investing in key areas to protect vulnerable people
The Council’s Medium Term Financial Strategy includes significant investment over the next five years in key areas such as:
- £46.8 million to support vulnerable adults and elderly citizens, meeting increasing demand and managing placement costs while progressing with the integration of health and social care. Such are the pressures on social care, this allocation is nearly six times higher than the £7.9m funds generated by taking the 2% adult social care precept.
- £8.1 million for children’s social care services, including £5.5 million to address rising costs and demand for children's placements.
- £7.4 million in home-to-school transport, ensuring services meet demand, particularly for pupils with special educational needs and disabilities (SEND).
The Council will also use £4.813 million from reserves in 2025/26 to cover time-limited costs and budget allocations.
Council tax increase and the need for financial prudence
The Council Tax increase from April will be capped at the Government’s national limit of 4.99%, including a 2% rise for adult social care and a 2.99% core increase for all services. This is equivalent to an increase of £1.67p per week for a Band D dwelling.
Councillor Butlin emphasised that the decision to raise Council Tax was not taken lightly.
“There is no doubt that this is a difficult decision to make, but it is one that is necessary to protect the vital services our communities depend on. The rising demand and increasing costs of crucial services such as social care, education, and home-to-school transport have significantly outpaced the resources available to us even when taking the maximum council tax increase. As a result, we find ourselves in a position where we must make responsible choices to safeguard these essential services. Our priority remains continuing to protect and support the most vulnerable people in our communities, and this increase, though challenging, is essential for us to do so.”
Delivering savings and improving efficiency
To ensure the budget remains sustainable, the Council has committed to £21.8 million in budget reductions for 2025/26, growing to £79.6 million by 2030. These savings will be achieved through improved procurement, better efficiency, increased income, and delivering reductions in demand.
Support for residents facing financial hardship
Anyone struggling to pay their Council Tax is encouraged to contact their local District or Borough Council to explore potential discounts or exemptions.
Additional information on support for households facing increased costs is available at https://www.costoflivingwarwickshire.co.uk/
For more information, including access to the webcast of the full Council meeting, visit the Warwickshire County Council website.