By the demoduck.co.uk local news desk
Derby City Council is reporting a year-end underspend of just over £4 million for 2025/26, alongside full delivery of its savings target for the second consecutive year.
The final accounts position, published by the council on 3 June 2026, is due to go before Derby Cabinet on Wednesday 10 June. The figures point to a stronger short-term position, although the council says financial sustainability remains a continuing priority.
The headline figures in Derby’s accounts
The report says the council ended 2025/26 with an underspend of just over £4 million and did not need to use its budget risk reserve to balance the books.
Instead, the underspend is being used to increase reserves, which the authority says will help strengthen its resilience against future pressures.
| Measure | Reported position |
|---|---|
| Year-end underspend | Just over £4 million |
| 2025/26 savings target | 100% achieved |
| Savings delivered | £9.861 million |
| General reserve fund | £15 million |
| Cabinet date | Wednesday 10 June 2026 |
The council also pointed to changes linked to the Government’s Fair Funding Reforms as part of the improved position. That does not remove the pressure on local authority budgets, but it has helped the council report a more favourable year-end balance.
Reserves rise without using the risk fund
A general reserve fund balance of £15 million is significant because reserves act as the council’s buffer against unexpected costs, demand spikes and timing gaps in funding.
The reported position does not mean Derby City Council is free of financial risk. It means the authority has ended the year with more room to absorb shocks than it would have had if it had needed to draw down reserves to close the budget.
Councillor Hardyal Dhindsa, Cabinet Member for Finance, Governance and Digital, said the £4 million underspend reflected “responsible leadership and financial management”, while adding that the council must “continue to be vigilant”.
Service pressures remain part of the picture
The council says children’s social care is reporting an underspend for the first time in several years. It links that partly to early intervention work that has reduced the number of looked-after children in the city.
The Dedicated Schools Grant position has also improved compared with the end of Quarter 3. The predicted in-year deficit has moved from £7.8 million to £7.085 million.
SEND funding remains a major area to watch. The council says the Government’s pledge to cover up to 90% of historic SEND deficits accrued by councils could represent around £21 million for Derby.
Cabinet will review the year-end report
Some parts of the council’s capital programme have been moved into future financial years to match revised project timelines. The council says this is a timing change and not a reduction in project scope.
The final 2025/26 year-end position will be presented to Derby Cabinet on Wednesday 10 June, with the meeting available to watch through the council’s YouTube channel.
Source: Derby City Council
Source check Source trail
This article is based on Derby City Council’s published 3 June 2026 statement and keeps the figures within the limits of that source.
- Checked the reported year-end underspend figure of just over £4 million.
- Checked the stated general reserve fund balance of £15 million.
- Checked the reported 2025/26 savings delivery total of £9.861 million.
- Checked the Cabinet meeting date as Wednesday 10 June 2026.
- Source
- Derby City Council
- Scope
- Derby
- Updated
- 2026-06-03 20:45
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