A report published by the review team highlights that Rotherham Council children's services faces a £15.7m overspend in 2018/19 as a result of "demand pressures and cost of care packages".
This is in addition to a predicted council budget gap of £30m over the next two years.
The council is also required to meet the cost pressures from Operation Stovewood, launched to investigate historic instances of child sexual exploitation (CSE) in Rotherham between 1997 and 2013, which is expected to reach £7m in 2019/20.
The CSE scandal led to a major overhaul of children's services in Rotherham and significant investment in provision, resulting in the department's Ofsted rating improving from "inadequate" in November 2014 to "good" in January 2018.
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