Emergency bailout helps council avoid £14.4m overspend

COUNCIL chiefs had to use millions of pounds from an emergency Government loan to avoid an overspend last year, new figures show.

- Phil Corrigan

Stoke-on-Trent City Council ended 2024/25 with a balanced position on its general fund, but would have had a £14.4 million overspend had it not been for the Exceptional Financial Support (EFS) from the Government.

The council's latest financial performance report says the overspend related primarily to the children and families directorate, with more than 1,000 Stoke-on-Trent children in care at the end of the year. The council secured £42.2 million of EFS covering two years in 2024, with a further £16.8 million agreed for 2025/26.

Leaders planned to use the money to cover the overspends in children's social care in the short-term, while investing in early intervention services to reduce the number youngsters coming into care. The finance report states the council spent £11.5 million of EFS funds on children's care placements, while £3 million was invested in early intervention and another £3 million in transformation.