Sefton Council's delivery of public services is currently running £4.29m over budget as of the end of June, according to the first monthly report monitoring the 2026/27 financial year. The council operates "in a very challenging financial environment," it said, and is working towards a more balanced position.
Children's social care biggest challenge
Children's social care is projected to come in £11.8m over budget this year, one of the largest pressures. Other departments like adult social care and education are also expected to push spending further over budget, but savings in other areas plus £9.3m in planned provision for additional pressures bring the total shortfall down to £4.29m.
The council said there are uncertainties surrounding the children's social care overspend, which might reduce if it can avoid dependency on agency placements. Most additional costs come from accommodation and support packages, and individual cases are being assessed to refine forecasts.
Adult social care and education pressures
Adult social care services have committed to efficiencies and savings of £5.5m to stay within budget, with £1m already delivered this financial year. However, the council warned these savings might be impossible to deliver, especially if winter proves difficult.
The education excellence department faces an overspend of £1.3m due to additional costs of education travel support for children with special educational needs and disabilities (SEND).
Income and capital programme
Council tax receipts are expected to generate a surplus of £0.45m, and business rates a surplus of £1.7m. The capital programme has seen additions, including £0.6m for a new SEND school at Litherland Moss and £33m for the Southport Marine Lake Events Centre (MLEC) project, which has faced opposition from Liberal Democrat and Reform UK councillors.
Previous year's overspend and high needs deficit
In 2025/26, the council saw an overspend of £28.9m on net service expenditure, largely due to children's social care (£22.6m), adult social care, and temporary accommodation costs. Significant use of earmarked reserves reduced the eventual overspend to £10.43m. The ringfenced Dedicated Schools Grant was overspent by £39.2m, with £38.8m related to SEND demand, pushing the accumulated high needs deficit to £106m.
Executive director of corporate resources Chris Warren said: "We live in volatile times [regarding] both demand and prices for some of our services." He noted that Sefton's borrowing need was £223.8m in 2025/26, lower than forecast, but total debt increased from £208.6m to £319.5m, driven by high needs provision. He added: "Sefton, like many councils, has surging demand to find suitable educational provision for our young people with additional needs. This is far outstripping the funding available."
The government has outlined plans to cover up to 90% of councils' deficits in this area by autumn, which would save Sefton £1.7m annually in borrowing costs. Council leader Marion Atkinson said: "I'm just really pleased that the government are getting a grip of the high needs deficit and the sort of challenges it puts on all of our budgets."
