News

Updating on the Council’s financial position

Calderdale Council is on track to deliver the savings agreed in the 2024/25 budget, although continues to face significant pressures in certain service areas.

The Council’s use of resources is closely monitored and regularly reported to senior leadership and the Cabinet. Members receive quarterly monitoring reports three times a year which update on the latest budget position and allow consideration to be given to any significant budget changes.

At the meeting of the Council’s Cabinet on Monday 5 August, members will receive the first formal report of 2024/25 providing information on the current financial position based on the first three months of the financial year (April – June). This information is used to make forecasts for the year end.

Whilst the savings agreed for 2024/25 are on track for delivery, the Council is still experiencing financial challenges with the latest forecasts predicting an end of year overspend of £8.4m against the agreed budget.

Like other local authorities across the country, the Council faces a continuation of some of the demand and cost issues, in addition to emerging pressures, including: 

·        Demand for temporary accommodation to support households facing homelessness.

·        Waste collection and disposal costs.

·        Children looked after residential and foster care placement costs.

·        Special Educational Needs provision.

·        Demand for Home Care provision.

However, Calderdale Council continues to take action with oversight and challenge by the senior leadership and councillors.

The Council has also submitted its Productivity Plan. This document, required by Government, sets out how services have been transformed to make better use of resources, including how technology is being used and how cost controls are being implemented.

The cost controls introduced during 2023/24 are continuing, including restrictions on council spend and recruitment. Further actions and controls are being implemented in social care to address the on-going increase in demand for services and complexity of need, through transformation programme activity.

In addition to details on the revenue budget that pays for everyday services that residents and businesses rely on, members will also hear how the Council is investing for the future. 

Over the next three years around £302million is set to be invested in work to improve the borough’s road network, schools, sports facilities and local town centres.  Nearly 80% of this cost is being met by Government, meaning £239million of new money is being brought into Calderdale. 

The Council continues to look for external funding opportunities to support stretched budgets and enhance service delivery. In addition to noting the financial situation, Cabinet is also being asked to approve a funding bid to the Arts Council to allow essential roofing and associated works to be completed at Bankfield Museum. The bid is expected to be in the region of £450k and if approved would require the Council to provide match funding of 10%.

Calderdale Council’s Cabinet Member for Resources, Cllr Silvia Dacre, said:

“It’s important that we receive regular updates on the financial position of the Council throughout the year, to ensure robust financial management and to identify any issues or opportunities.

“Whilst we are making good progress to support the savings identified in the 2024/25 budget thanks to our talented and enterprising staff, there is still a need for us to be cautious and to pay close attention to ongoing pressures in certain areas of council service delivery.

“The pressures faced by the Council are replicated across the local government sector and we would welcome any increased levels of certainty over future funding in the new government’s Autumn Spending Review and Budget.”

The report outlining the Council’s financial position is being discussed at the meeting of Cabinet on Monday 5 August at Halifax Town Hall from 4pm. The meeting is also being streamed online at  https://calderdale.public-i.tv/core/portal/home(external link)

ENDS

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