Bexley Council is facing a £2.37 million overspend, primarily driven by challenges in Adult Social Care, according to the latest budget monitoring report. The Public Cabinet convened on Thursday, 27 November 2025, to address the concerning financial forecast and discuss strategies for mitigating the deficit.
The Revenue Budget Monitoring report for September 2025 (Appendix A - Revenue Budget Monitoring - Public Cabinet) presented to the Cabinet, revealed the significant overspend against a net budget of £253.425 million. The report attributes the overspend primarily to increased placement activity within Adult Social Care, which is reporting a £3.621 million overspend. This overspend is largely due to adverse variances of £5.954m related to forecasted placement activity. The council is forecasting 3,535 placements for the year, 311 more than the planned 3,224 placements. Councillor Melvin Seymour, Cabinet Member for Adults' Services and Health, and his team are implementing a Financial Intervention Strategy, having already identified £3.260 million in new mitigations.
Children's Services is also facing financial strain, forecasting a £1.620 million overspend. This figure has increased by £0.276 million since the last report, primarily within the Education Service. The report cites a ruling by the Department for Education requiring the cost of personal transport budgets to be charged to the Education budget rather than the Dedicated Schools Grant as a contributing factor. The Education Service is reviewing the situation, seeking legal advice, and examining practices in other local authorities. They have also identified £0.088m in forecast reductions as part of the Financial Intervention Strategy.
Other directorates are also experiencing budgetary challenges. Finance and Corporate Services is forecasting a £0.668 million overspend, while the Place Directorate is projecting an underspend of £0.638 million. The Housing and Strategic Planning service is forecasting an underspend of £0.326m, with Housing Services forecasting an underspend of £0.745m due to effective prevention measures. Environmental Services are forecasting an underspend of £1.489m, mainly due to a decrease in expected contract spend relating to Refuse Disposal. These underspends help to offset overspends in other directorates.
The Cabinet was also asked to declare any disclosable pecuniary interests or other significant interests, in accordance with the guidance provided in the report pack (Public reports pack 27th-Nov-2025 19.30 Public Cabinet.pdf).
Bexley Council is proactively addressing the financial challenges through its Future Bexley programme (Cabinet Future Bexley - position update final). This initiative aims to contribute to the Medium Term Financial Strategy (MTFS), mitigating the need for service reductions or decreased performance through reduced funding. It focuses on identifying areas for enhanced resident services, improved value for money and efficiencies, and modernising Council services.
