Despite operating in a highly constrained financial environment, the Council has closed the 2025/26 financial year with spend under the agreed budget profile of £8.2 million, reflecting the hard work and strong financial discipline of elected members and officers across the Council.
This position must be viewed against a challenging national backdrop. Councils across England are collectively facing a funding gap of £6.2 billion* over the next two years. This shortfall is primarily driven by sustained increases in demand and cost pressures, particularly in adult social care, children’s services, homelessness support, and transport for children with special educational needs and disabilities (SEND).
Locally, Halton has experienced significantly greater financial pressure than many areas. Since 2010, the Council’s funding has reduced by £52.4m (25.9%) in real terms, compared to a national average reduction of 18.1%.
At the same time, demand for services and the associated costs of those services particularly social care has risen well above inflation. This has led directly to the significant financial challenges.
These pressures are not unique to Halton. Across the country, 37 councils now require the Government’s Exceptional Financial Support (EFS) to help fund their budgets.
This position has been recognised by successive Governments as a national issue, hence the continued provision of support via EFS and the national changes being introduced over the next two years to the funding of high-cost areas, such as SEND education.
Debt Position
Excluding the funding of the Mersey Gateway Bridge**, the Council’s outstanding debt stands at £100 million. This includes long term borrowing (up to 20 years) taken out over previous years to fund the Council’s capital projects (eg. land or buildings).
At 31st March 2025 the Council also had cash invested short-term totalling £63m, which generates income until such time as it is required to fund the capital projects.
Therefore, the Council’s “net” outstanding debt was £37m, which is intended solely to fund capital projects within the Council’s capital programme and is a normal position for most councils.
While the Council has delivered an underspend, there remains a significant funding gap. These are largely driven by sustained increases in demand for adult and children’s social care, alongside rising delivery costs. EFS support continues to play a role in managing these pressures.
Addressing the financial challenges
The Council is taking a long-term, strategic approach to addressing these challenges. Plans are in place to reduce funding gaps over the coming years, with £5.656m of savings identified for 2026/27.
Savings will be achieved through service change and improved efficiency, rather than short-term reductions that could undermine essential services.
The focus will be on reshaping how services are delivered to ensure they remain aligned with community priorities while being financially sustainable.
Conclusion: Cllr Eddie Dourley, Executive Board Member for Corporate Services
“False and misleading information has been circulating on social media about the Council’s true financial position, so it important that residents have the full picture.
“We have not and will not be complacent about the Council’s financial challenge.
“While we have balanced the budget and ended the year with an £8.2m underspend, we will continue to work tirelessly as an Executive Board, alongside the Chief Executive to systematically reconfigure what we deliver and how we deliver it, to best meet the priorities of the community of Halton.
“This will be done responsibly, in an affordable way – and we will not take services off a cliff to make quick hit savings.”
Ends
*Local Government Association
** £152m borrowing relates to the Council’s contribution to funding the Mersey Gateway Bridge. This will be fully repaid over 20 years through toll charges, therefore, it does not affect the Council’s budget and is not funded by council taxpayers