Economic crisis: Kirklees Council sets out budget pressures and takes action on rising costs

Senior councillors will assess the scale of increases in costs and demands as it continues to support residents through the cost-of-living emergency.

The council’s latest financial monitoring report will reveal increased costs in the current financial year of £34.3 million with the budget gap forecast to rise in future years.

Rocketing energy prices have added the highest costs to the council’s budget in recent months with nearly £12 million in extra funding needed to heat and light council buildings, schools and leisure centres.

Inflation in goods, services and pay have added a further £10 million to budgets as a result of the national economic crisis. Other increased demands on vital council services make up the rest of the shortfall in the council’s current budget.

Leader of Kirklees Council, Shabir Pandor, said: “The cost-of-living crisis and the wider economic emergency have hit Kirklees residents hard. We are now seeing the impact on budgets for council services. It means we are facing significant pressures.

“We’re taking immediate action to reduce our costs and bring the deficit down but it’s the government announcements on public spending which will be even more crucial. They will set the scene for the decisions we need to take.

“The council is taking immediate steps to address the financial challenge in the current year including using its reserves, freezing staff recruitment, rationalising the number of buildings it uses and cutting expenses that aren’t critical to frontline services.”

Councillors now say that the government’s Autumn Statement, delayed until November 17, alongside the local government settlement expected in December, will be critical to determining the financial future for councils and services across the country.

The Autumn Statement will give an indication of available spending for all public services over the coming years with the financial settlement setting out funding for each council in the country.

Coun Pandor (Lab, Batley West) added: “In my national role with the Local Government Association, I talk to council leaders across the country and it’s abundantly clear how serious the situation is for virtually every local authority.

“Councils across the whole country are facing unprecedented pressure on budgets now and even more severe challenges in the years ahead.”

The Cabinet meeting will be held on November 16.