The scale of the financial challenges facing the county council have been highlighted – after estimates forecast an overspend in excess of £20m by the end of 2024/25.

Latest available data shows that just three months into the 2024/25 financial year, the council had spent £4.6m more than had been expected at that point in the year.

And that has led to predictions that by the end of 2024/25 the council could overspend by as much as £20.9m.

Council officers have already started to look for £14m of new savings – in addition to the £46m of savings already planned for 2024/25.

And on Monday (October 14) the situation was presented to a meeting of the council's cabinet.

Increasing costs of materials, high energy prices and increased demand for council services are all said to have had an impact.

And the biggest financial pressures are reported to relate to the provision of services for 'looked after' children and 'supported living services'.

At the meeting executive member for resources and performance Cllr Bob Deering highlighted the ongoing challenges facing councils.

But he also pointed to savings already made by Hertfordshire County Council, the future savings that would result from 'organisational resourcing' and the previous decision to double the council's contingency.

Cllr Deering told the cabinet the county council was on already track to achieve £43m of the £46m planned savings this year.

And he said officers were now working "extremely hard" to find additional savings for this year.

According to an officers' report published in advance of the meeting, council departments forecasting overspends are being asked to identify actions to mitigate the pressures, where possible – in a bid to cut spending by £6.6m.

And where they can't, they will be asked to take other actions to "offset pressures".

Meanwhile all council departments are being been asked to reduce 'non-pay' costs where possible, in a bid to save a further £5.4m – which is equivalent to a 30 per cent spend reduction in areas such as printing, consultancy, mileage and training.

Cllr Deering acknowledged that he wasn't sure whether the council would find an additional £14m of savings.

But he pointed to the council's previous decision to double the amount of contingency in the budget this year – to £20m.

And he said he was "optimistic" that they would find some additional savings – and that any overspend would end up under the £20m contingency.

Meanwhile it was also reported that the ongoing restructuring of the organisation will ultimately save £16m a year.

But with the review not set to be complete until January 1, savings achieved this year are expected to be around £6m.

Pointing to social care, leader of the council Cllr Richard Roberts said that it was not lost on anybody that – even with a budget in excess of £1.1bn – the council was struggling to meet demand.

And he also highlighted a letter he had sent to Hertfordshire MPs last week, that had highlighted the need for financial and policy reform with regard to SEND provision.

According to the report presented to the cabinet the overall schools budget is also heading for an overspend of £2.3m in 2024/25 – which is being driven by a £4m overspend in the high needs block.

The high needs block is used to support the education of children with special educational needs and disabilities.

And referring directly to the high needs block, Cllr Roberts said: "We have held that finance position – without overspend – until this year.

"Potentially we may overspend really really significantly from here on in.

"The cost of borrowing around that is something that is almost unsustainable for this council – and across the country.

"And that is one of the key asks for our MPs to address that issue – whether it is funding or reform, because it is unsustainable in so many councils."