Kingston Council has overspent by £1.95 million for the 2024/25 financial year, drawing from earmarked reserves to cover the deficit. The overspend was revealed at the Corporate and Resources Committee meeting on Thursday, June 26, 2025, where councillors discussed the council's financial performance and future plans.
The General Fund position showed the significant overspend, despite 87% (£7.23m) of planned savings being delivered out of a total of £8.23m. A further £0.44m in savings is expected in 2025/26, but alternative plans are needed for the remaining £0.6m. The General Fund balance remains at £19.63m as of March 31, 2025.
Several directorates contributed to the overspend, including Adult Social Care & Health (£2.66m), Place (£5.59m), Children's Services (£3.07m), and Corporate Services (£0.32m). Residents & Communities and Chief Executives directorates reported underspends.
Specific pressures in Children's Services, particularly in Children Looked After (CLA), were highlighted, with increased demand and placement costs. The average cost of a residential placement has increased by 42%, from £4,103 in 2023/24 to £5,835 in 2024/25.
The committee also discussed motions referred from the council meeting on April 1, 2025, including one regarding social media use by councillors and another expressing disappointment over national insurance increases and their potential impact on local businesses. The committee was also informed of an urgent decision to approve a contract for Google Workspace licences and associated professional services to XMA Limited, valued at £4.5m, due to complexities and delays in the renewal process.