Calderdale Council Faces Financial Shortfall, Requires Budget Adjustments

Calderdale Council has issued a warning that its expenditure is set to exceed its funding by up to £15.7 million by the financial year 2027/28. This information was disclosed in a report that is slated for consideration at the forthcoming Cabinet meeting scheduled for October.

The medium-term financial plan, which is revised annually, lays the groundwork for the Cabinet’s budget proposals for the upcoming fiscal year. It is essential for the council in establishing a balanced budget at the annual Budget Council meeting.

The council continues to grapple with the repercussions of high inflation, particularly the surging prices of energy and fuel, as well as increases in pay following persistent price hikes. These trends, coupled with the ongoing cost-of-living crisis, are adversely affecting residents, the local economy, and the council itself. Concurrently, there is a rising demand for public services.

In order to achieve a balanced budget, the council will need to identify savings amounting to £10.6 million, £13 million, and £15.7 million over the forthcoming financial years leading up to 2027/28.

This year, the government’s Autumn Statement is anticipated on October 30, with the Local Government Financial Settlement (LGFS) to follow shortly before Christmas. The LGFS translates government funding figures into specific grants for each local authority and factors in the expected council tax levels.

Calderdale Council has noted that its financial standing could shift once the LGFS figures are released, necessitating potential alterations to the Cabinet’s budget proposals in January 2025.

Councillor Jane Scullion, leader of Calderdale Council, stated, “Our priority is to continue to balance the books so that we can protect our vital public services in the years to come. Currently, there’s no formal indication that we will get any extra funding for local government in 2025/26 apart from the usual financial settlement from central Government.”

She added, “The medium-term financial plan is one of the tools which we use to help us carefully manage the budget so that we can continue to deliver good quality services across Calderdale.”

The next significant step in the council’s financial planning will be the announcement of the Cabinet’s budget proposals on January 13, 2025, which will commence a public consultation phase. The ultimate budget decision is set to take place at the Budget Council meeting on February 24, 2024.