Financial challenge
Current spend
We invested more than £395m (gross) during 2022-2023 in commissioning adult social care services from hundreds of independent and council owned businesses that make up Norfolk's care market. In addition to our investment, both our health partners and private self-funding individuals purchase services from these businesses as part of a local care economy.
Our 2023-2024 budget includes a general council tax increase of 2.99% and a 2% increase in the adult social care precept. For 2023-2024, we made £30m available to adult social care to support the annual uplift. This is the highest uplift that we have offered, recognising the current inflationary pressures being faced by the sector, but it is recognised that this is in the face of unprecedented financial challenges for providers.
Financial outlook
Like many local authorities, we continue to face financial challenges driven by increases in the demand for our services and rising costs associated with delivering these services, set against a backdrop of static funding levels.
The financial challenges we face, requires substantial savings of £59.7m to be delivered by us during 2023-2024, of which £29m is to be delivered from within adult social care.
Over the medium term this potential funding gap increases to nearly £188m. Therefore, we face a certainty of future adult social care savings, on top of sustaining the over £80m delivered over the last seven years.
Medium term view
Our medium view of funding and spending levels from 2023 to 2027 are:
2023-2024:
- Forecast net expenditure before planned savings: £553.407m
- Forecast net expenditure with planned savings: £493.707m
- Likely funding level: £493.707m
- Gap between forecast net expenditure with planned savings and likely funding level: £0m
- Planned savings (Gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £59.7m
- Gap between forecast net expenditure before planned savings and likely funding level: £59.7m
2024-2025:
- Forecast net expenditure before planned savings: £628.157m
- Forecast net expenditure with planned savings: £567.038m
- Likely funding level: £521.121m
- Gap between forecast net expenditure with planned savings and likely funding level: £-45.917m
- Planned savings (Gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £61.119m
- Gap between forecast net expenditure before planned savings and likely funding level: £-107.036m
2025-2026:
- Forecast net expenditure before planned savings: £685.266m
- Forecast net expenditure with planned savings: £623.478m
- Likely funding level: £542.07m
- Gap between forecast net expenditure with planned savings and likely funding level: £-81.408m
- Planned savings (Gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £61.788m
- Gap between forecast net expenditure before planned savings and likely funding level: £-143.196m
2026-2027:
- Forecast net expenditure before planned savings: £746.583m
- Forecast net expenditure with planned savings: £682.51m
- Likely funding level: £558.386m
- Gap between forecast net expenditure with planned savings and likely funding level: £-124.124m
- Planned savings (Gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £64.073m
- Gap between forecast net expenditure before planned savings and likely funding level: £-188.197m