Norfolk County Council to tackle financial challenges with major transformation programme

Norfolk County Council is continuing to transform local services while navigating significant financial pressures, according to a new report.

Driven by rising demand and inflation, the council has a budget gap of £41.6m in 2026/27 - rising to £171.4m over the next four years. 

To address the financial gap, the Council has developed proposals to save £35.7m - with major savings expected through investment in key demand-led services such as adult social care and home-to-school transport. 

Councillor Andrew Jamieson, deputy leader and cabinet member for finance at Norfolk County Council, said: 

"We are operating in a climate of continued uncertainty. Inflation, demographic pressures, and a lack of clarity around future funding settlements mean we must make difficult decisions to ensure we can continue to deliver vital services." 

Council Tax: A Key Part of the Financial Picture 

Council tax remains a critical lever in balancing the budget. The Council's current planning assumes a 2.99% increase, including a 1% adult social care precept. However, the Government has set a referendum threshold of 5%, including a 2% adult social care precept and the Government's funding model assumes councils will apply the full 5% increase. The council will therefore consult on a range of council tax options. 

Councillor Jamieson said:  

"We want to minimise the burden on Norfolk taxpayers and that means keeping rates as low as practically possible. However, council tax represents an increasingly large percentage of the funds that Government say are available to Local Authorities - rising to 56%. The government have consistently indicated that they expect councils set council tax to the maximum allowed. Therefore, the financial settlement we receive from government in December will ultimately dictate where we can set council tax in Norfolk" 

Transforming services to meet demand 

The council is focusing its efforts on transforming high-demand services to improve outcomes and efficiency. In adult social care, savings proposals include expanding community-based support, integrating care models, and reforming commissioning to reduce reliance on formal care services and improve wellbeing. These changes aim to support people to live independently for longer and reduce pressure on more costly services. 

In children's services, proposals target smarter approaches to home to school transport; including increased use of travel training, reviewing high-cost contracts, and supporting independent travel where appropriate. Other initiatives include reducing reliance on residential placements and helping families stay together through targeted support. 

Councillor Jamison said: 

"We are prioritising person-centred approaches in adult social care and smarter solutions in school transport. These proposals aim to protect services for vulnerable residents while ensuring value for money. These proposals are not just about cost-cutting - we are investing in how the council delivers local services." 

Next steps 

Over the coming months, the budget will be subject to public consultation and scrutiny by the council's select committees. Key national announcements - including the Autumn Budget on 26 November and the Local Government Finance Settlement in December - will inform final proposals. Cabinet will review updated proposals on 26 January 2026, with Full Council making final decisions, including on council tax, on 17 February 2026. 

Cabinet will consider the finance reports when it meets at 10am on Monday 13 October. Watch the meeting, live or afterwards and read the reports.