Cabinet has today received an update on the development of the Council’s financial strategy.
Knowsley Council’s robust approach to financial management has maintained a relatively stable financial position in recent years and in March a balanced budget (for the seventh consecutive year) was set for 2026/2027.
The Council will formally set the 2027/2028 budget and Council Tax in March 2027.
In preparing the 2027/2028 budget, significant financial risks will be factored in, including an additional £15m of funding required for Adult’s and Children’s Services to reflect continued growth in demand, increases in care provider fees and charges for social care placements.
The forecast shortfall for 2027/28 is £6.101m but through low-impact savings and the initial contribution of the transformation programme, it is estimated that this will reduce to £1.599m
Work is underway to identify permanent solutions to this funding gap and the Council is continuing to engage with central Government to ensure funding is allocated based on local need.
An update on the revenue budget was also provided and an overall deficit of £4.2 is forecast in 2026/2027, largely due to rising costs and demand in Children’s and Adult Social Care. The Council has already set aside one-off resources to address this and ensure that a balanced budget can be reported at year end.
Cllr Jayne Lonergan, Cabinet Member for Resources, said “Our robust financial management has ensured we can continue to deliver the essential services that our residents value and need, whilst also reporting a balanced budget. We are continuing to effective plan for the challenges we face, particularly around rising social care costs, maintaining our financial resilience and protecting the services that matter the most to our residents.”
Cabinet was also updated on the Capital Programme with £65.733m scheduled to be spend in the 2026/2027 year. The programme includes investment in transport improvements across the borough; an additional 235 mainstream school, special school and nursery places; provision of disabled facilities and adaptations to approximately 500 residents’ properties; improvements to the highways network, leisure centre and Grace Park in Halewood; town centre improvements; and support to prevent residents becoming homeless through the purchase of properties.
Cllr Jayne Lonergan added “The capital programme demonstrates our continued commitment to supporting economic growth, improving infrastructure and delivering better outcomes for residents.”