Financial position
Current spend
We invested more than £500m (gross) during 2024-2025 in commissioning adult social care services from hundreds of independent and council owned businesses that make up Norfolk 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 2025-2026 budget includes a general council tax increase of 2.99% and a 2% increase in the adult social care precept. For 2025-2026, we made £23.2m available to adult social care to support the annual fee uplift. This recognises the current inflationary pressures being faced by the sector, but we acknowledge that this is in the face of unprecedented financial challenges for providers.
Financial outlook
Like many local authorities, we continue to face significant financial challenges. These are driven by increasing demand for care, rising complexity of need, and the growing costs of delivering services - particularly in the context of an ageing population. Norfolk has one of the oldest age profiles in England, with nearly 25% of residents aged 65 or over, and this proportion is expected to grow rapidly over the next decade.
In 2025-26, we are required to deliver £45.3 million in savings across the council, with £24.5 million of that coming from adult social services. These savings are being achieved through a combination of smarter commissioning, investment in prevention and reablement, and reshaping housing and care options to promote independence.
Over the medium term, the financial challenge intensifies. The council faces a projected funding gap of £120.9 million between 2026-27 and 2028-29. All directorates including adult social services are expected to contribute a further savings over this period.
Medium-term view
Our medium-term financial strategy outlines the growing gap between forecast expenditure and available funding.
This reinforces the need for continued transformation, innovation, and national funding reform to ensure the sustainability of adult social care services in Norfolk.
Our medium-term view of funding and spending levels from 2025 to 2029
2025-2026
- Forecast net expenditure before planned savings: £617.219m
- Forecast net expenditure with planned savings: £571.872m
- Likely funding level: £571.872m
- Gap between forecast net expenditure with planned savings and likely funding level: £0m
- Planned savings (gap between forecast net expenditure before planned savings and forecast net expenditure with planned savings): £45.347m
- Gap between forecast net expenditure before planned savings and likely funding level: £45.347m
2026-2027
- Forecast net expenditure before planned savings: £655.225m
- Forecast net expenditure with planned savings: £634.265m
- Likely funding level: £592.705m
- Gap between forecast net expenditure with planned savings and likely funding level: £41.560m
- Planned savings (gap between forecast net expenditure before planned savings and forecast net expenditure with planned savings): £20.960m
- Gap between forecast net expenditure before planned savings and likely funding level: £62.520m
2027-2028
- Forecast net expenditure before planned savings: £709.898m
- Forecast net expenditure with planned savings: £691.246m
- Likely funding level: £615.491m
- Gap between forecast net expenditure with planned savings and likely funding level: £75.755m
- Planned savings (gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £18.652m
- Gap between forecast net expenditure before planned savings and likely funding level: £94.407m
2028-2029
- Forecast net expenditure before planned savings: £764.810m
- Forecast net expenditure with planned savings: £761.156m
- Likely funding level: £640.233m
- Gap between forecast net expenditure with planned savings and likely funding level: £120.923m
- Planned savings (gap between forecast next expenditure before planned savings and forecast net expenditure with planned savings): £3.654m
- Gap between forecast net expenditure before planned savings and likely funding level: £124.577m
