The Resources Scrutiny Committee of Derbyshire County Council is scheduled to meet on 11 December 2025 to discuss the 2026/27 budget, the council's talent strategy, and a local government reform timeline. The meeting will include an update on the council's apprenticeship levy and a consultation on the 2026/27 revenue budget.

2026/27 Budget Preparation

The committee is scheduled to discuss the preparation of the 2026/27 revenue budget. The report pack includes the proposed timetable for completion of the 2026-27 budget, including consultation with stakeholders and an assessment of the need for a full equality impact assessment on budget saving proposals. The committee will also note the commencement of annual pre-budget engagement activities including the Your Council, Your Voice Survey.

The report from the Director of Finance also includes key announcements from the Autumn Budget 2025 that are relevant to local government.

The council faces continuing significant budget pressures as a result of pay and price inflation, and rising demand for services as a result of demographic changes. The council is forecasting a small net overspend of £1.383m for 2025-26.

Savings delivery is on track in most areas. The continuing demand and cost pressures mostly in Children's Social Care services, and to a lesser extent in Adult Social Care, are resulting in the forecast outturn being considerably higher than the budget. However, this is being offset by savings on the Corporate Budgets.

The report pack notes that the greatest pressures are in providing children's social care packages as a consequence of ongoing demographic shifts and increasing need. The impact of the National Living Wage (NLW) rise, and the higher levels of employers' National Insurance (NI) will again put pressure on Adult Social Care costs in 2026/27.

The council undertook a Your Council, Your Voice Survey between 6 June 2025 and 10 August 2025. The survey asked residents how much they supported a range of broad options to save money or generate extra revenue. The results of this survey will be used to inform the proposed budget. The council also intends to consult with business ratepayers, corresponding with representatives of the East Midlands Chamber of Commerce, the Confederation of British Industry (CBI) East Midlands, and the Nottinghamshire and Derbyshire Federation of Small Businesses (FSB) on the council's budget proposals.

On 20 November 2025, Alison McGovern MP, Minister of State (Minister for Local Government and English Devolution) announced the publication of the Government's 2026-27 to 2028-29 Local Government Finance Policy Statement. The statement included:

• A £600m Recovery Grant which will target funding at low taxbase/high deprivation authorities. Derbyshire County Council will not receive any of this grant.
• The 'Remoteness' factor has been removed from all Area Cost Adjustment calculations except for Adult Social Care
• The distance cap for Home to School transport for children with special educational needs and disabilities (SEND) has been raised to 50 miles.
• Council Tax referendum principles for councils will remain unchanged for the MYS period.

The Chancellor's statement contained some measures that are expected to have a direct impact on the Council's financial planning for 2026-27, including:

• The government will set out its plans for SEND reform early in the new year and that future funding implications will be managed within the Government's Department Expenditure Limit (DEL) envelope¹.
• The 2026 Business Rates Revaluation will come into effect from 1 April 2026, updating rateable values for all non-domestic rating properties to reflect current market conditions and adjusting the tax rates to reflect the changes to the tax base.
• A 0.5% cut to all Department Expenditure Limits (DEL) will be applied across Government budgets in 2028-29, 2029-30 and 2030-31. # Talent Strategy

The committee is scheduled to receive an update on the council's talent strategy, following a previous meeting in September. The report pack includes an update on the progress in relation to the launch of new apprenticeships in September 2026 and recruitment to external apprenticeships in September 2026. The report also provides an updated position in relation to the use of the Apprenticeship Levy within Derbyshire County Council.

The council is subject to the Apprenticeship Levy, a government initiative requiring employers with a pay bill over £3 million to contribute 0.5% of their total national insurance pay bill into a digital account for apprenticeship training. The government then adds a 10% top-up to encourage usage and flexibility.

The council currently utilises the levy but there are opportunities to increase its use. The council aspires to align with the same level of Public Sector apprentices starts per year target which is currently 2.3% of headcount (230). The council is currently at 1.01% of headcount in 2024.

The report pack notes that there is also major reform of how apprenticeships are funded and structured which will replace the apprenticeship levy with a new Growth and Skills levy. The Growth and Skills levy will enable organisations to utilise the levy for both long and short term apprenticeships lasting a minimum of 8 months, shorter more targeted training and provided more focus on creating opportunities for young people.

The council is exploring potential apprenticeship opportunities in the following areas:

• Childrens Services
  • Catering
  • SORE (Outdoor learning)
• Corporate Services and Transformation
  • Business Services
  • Customer (Call Derbyshire)
  • Digital
• Place
  • Highways
• Adult Social Care & Health
  • Adult Care Workers

The council is aiming to recruit around 20 new apprentices as part of this campaign. The council will also be looking to launch a recruitment campaign for new apprenticeship positions as part of National Apprenticeship week from 9th – 15th February 2026.

The council has also launched an internal Data Technician apprenticeship working with Multiverse to enhance the digital skills of Digital Champions across the council and have 25 colleagues that have signed up to complete this. This equates to a new spend of £300,000 of apprentice levy.

Local Government Reform Timeline

The agenda also includes a discussion of the Local Government Reform Timeline & Process, but no details of this discussion are included in the report pack.

Public Questions

The meeting will allow for a maximum of 30 minutes in total for public questions. Questions must be submitted in writing or by email to the Director of Legal Services no later than 12 noon three working days before the committee meeting.