Doncaster Council bosses to 'reduce expenditure' amid early pressure on 2026/27 budget
Emerging pressures on the council budget were considered signficant enough to have an early update issued to the Mayor’s cabinet.
Senior City of Doncaster Council directors are being encouraged to “actively identify opportunities to reduce expenditure” as early financial estimates project a £6.2million overspend this year.
The local authority’s first financial monitoring report was shared with Mayor Ros Jones’ cabinet just two months into the 2026/27 financial year, having been brought forward due the “emergence of a number of financial pressures”.
Mayor Jones said in the meeting: “This is an earlier financial monitoring report than would normally be considered by cabinet.
“Given the additional savings requirements incorporated into the budget in February, together with the emergence of a number of financial pressures, it was considered prudent to provide cabinet with an additional early report to enable consideration of the council’s financial position and any remedial action at the earliest opportunity.”
The report shows Doncaster Council is facing a challenging financial outlook for 2026/27, after a Reform UK amendment to the budget in February 2026, which reduced the 4.99 per cent council tax hike proposed by Labour to a two per cent rise.
Despite the concerned face put on by the lead administration, sources have reasserted the authority is not facing a Section 114 notice – when a council effectively declares bankruptcy.
Reform UK’s amended budget included a £5m contingency – now £5.6m due to inflation – but this has not yet been applied.
The Mayor said: “While application of the full contingency would reduce the forecast overspend to £0.6m, doing so at month two would place the council in a challenging financial position at a very early stage of the financial year and significantly reduce our flexibility to respond to further pressures that may emerge.”
She also said a further £2.3m risk reserve budget has also not yet been applied. This pot of money includes £1.2m of deferred high street investment in Askern and Bentley. It is understood that if this reserve budget does get applied, that high street investment would be lost.
Despite the budget being implemented by Reform UK, the Mayor is the elected member ultimately responsible for the council’s finances and was pressed on what her team was doing to bring the 2026/27 finances back in line.
She said: “The Reform budget amendment increased the financial risks facing the council, by both significantly reducing income and presenting overly ambitious savings targets without specifying which council services they proposed to cut.
“We will continue to focus on addressing pressures, delivering savings and identifying mitigating actions to both address the overspend but also to strengthen the Council’s financial position and support the development of a sustainable Medium-Term Financial Strategy.”
In February, when the new budget was passed, Reform UK’s then-leader Councillor Craig Ward said: “It’s the best thing to do for Doncaster residents. We’re trying to save them money. I believe it was the right thing to do.”
He called it a “historic moment for Doncaster”, adding: “Reform promised to fight for residents – and tonight we delivered.”