Calderdale Council estimates its costs will exceed its funding by up to £15.7 million by 2027/28 in a report which will be considered at the next Cabinet meeting in October.
The medium term financial plan is updated annually and represents the starting point for developing the Cabinet’s budget proposals for the next financial year.
It plays a key role in enabling the Council to set a balanced budget at the annual Budget Council meeting.
The plan forecasts the resources that might be available to deliver the Council’s priorities over the next three financial years and highlights the issues, risks and challenges that will also need to be considered.
The Council is continuing to feel the impact of high inflation, especially from the price of energy and fuel, and on pay, following sustained price increases.
The cost of living continues to have a significant impact on residents, on the local economy and on the Council and demand for public services continues to rise.
To set a balanced budget, the Council will need to find savings of £10.6 million, £13 million and £15.7 million in the financial years to 2027/28.
This year, the Government’s Autumn Statement is scheduled to take place on 30 October and the Local Government Financial Settlement (LGFS) is expected just before Christmas.
The LGFS translates Government funding levels into specific grants for each local authority and makes assumptions about the level of Council Tax which the Council will raise. It is likely to be for one year, pending a longer term Spending Review in Spring 2025.
The Council’s financial position may change once the settlements have been published and the Cabinet budget proposals in January 2025 will be adapted accordingly.
Cllr Jane Scullion, Leader of Calderdale Council said:
“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 in addition to the usual financial settlement from central Government.
“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 milestone in the Council’s financial planning process will be the announcement of the Cabinet’s Budget proposals on Monday 13 January 2025, which will mark the start of a public consultation.
The final budget will be set at Budget Council on the Monday 24 February 2024.
The proposed medium term financial plan will be discussed at Calderdale Council’s next Cabinet meeting on Monday 7 October 2024 at Halifax Town Hall from 4pm and live streamed at https://calderdale.public-i.tv/core/portal/home(external link).