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Council Forecasts £10m Budget Overspend Driven by Rising Care Costs

Council Forecasts £10m Budget Overspend Driven by Rising Care Costs

13 August 2026

North Yorkshire Council is facing severe financial pressure today after its first quarterly budget report forecast a £10.2 million net overspend for the financial year

Senior finance officers confirmed that rising placement costs and specialised support needs for children in care are driving an £11.7 million gross pressure within children's services, pulling the unitary authority overall into a £10.27 million projected deficit.

The financial figures form part of the quarterly performance report scheduled for formal review by the council's executive committee next week on Tuesday, August 18th.

Council directors emphasised that targeted cost-reduction panels and spending controls are being deployed across all service directorates to stabilise the budget before the end of the financial year.