Newark & Sherwood Council leader says there’s ‘nothing to worry about’ despite predicted overspend on services by £359,000

While the authority is currently predicting it will have a ‘favourable’ £62,000 left over once all income and spending is accounted for, documents show it is currently expecting to overspend across its services.

The cost of all services is currently expected to be £359,000 over what it had planned in its original budget.

However, Coun Paul Peacock (Lab), council leader and portfolio holder for finance, says the figures are from the second quarter of the current financial year, meaning they should become more ‘favourable’ near the year-end in March 2026.

He said: “Because we are only in quarter two, that is pretty normal.

"As we go through the year that should equalise, we have done most years, it is nothing for us to worry about.”

Documents say some of the overspending is down to factors, including income for resettlement schemes, such as Homes for Ukraine, being lower than expected.

The council is currently reporting it is set to overspend across services in heritage, culture and the arts, housing, public protection, finance and economic development.

The only two areas where it is underspending are climate and environment and health, wellbeing and leisure.

However the documents also show more money than expected should be brought in from taxation and non-specific grant income, meaning the council could bring in £529,000 more than it was anticipating in this area.

This has helped the authority achieve an overall net position of a favourable £62,000 as of the second quarter of the year, meaning it is on track to set a balanced general fund budget.

Any underspending is typically transferred to reserves to help the council build up its financial resilience.

The current financial year of 2025-26 runs from April 1 to March 31, and councils are legally required to set a balanced budget every year.