More Kirklees cuts with ‘very difficult decisions’ amid £24m council budget gap
A report to Cabinet next week sets out the gravity of the situation and explains that the council needs to bring forward cuts and savings proposals “at pace”
Some “very difficult decisions” need to be made if Kirklees Council is to plug a £24m black hole in next year’s budget.
A report to Cabinet next week sets out the gravity of the situation and explains that the council needs to bring forward cuts and savings proposals “at pace” in order to balance its books in 2027/28. The council already finds itself in treacherous financial waters in the current year, most recently forecasting a £13.6m overspend. And this figure is after £5.2m worth of reserves have been applied.
The report says that due to the 2027/28 budget gap and financial projections for the next five years: “… the council will need to make some very difficult decisions in terms of service provision, be those different methods of delivery, reductions in service and in some cases whether some services are stopped. There is an expectation that savings proposals from directorates will inevitably include reductions in staffing levels within the council.”
Rising costs and demand in social care for older people and adults with disabilities, and care services supporting children and young people continue to be a source of significant pressure for the local authority.
In previous years, the council has fallen back on its reserves in order to set a balanced budget but these are now depleted, with “no scope” for incorporating them into the budget plans for next year. The funding gap must therefore be bridged by cutting costs or generating more income. The reserves also need to be built back up going forward.
Several actions have already been taken in a bid to crack down on spending. These include: controls on recruitment, with all posts requiring the approval of the Executive Leadership Team; a review of overtime and spend on agency staff; only essential spending which allows the delivery of services; exploring opportunities to match grant income with tasks already undertaken by the council; reviewing the Capital Plan; and speeding up the sale of assets.
In the view of the Service Director for Finance, Kevin Mulvaney, the above actions “remain necessary” to avoid the need to issue a Section 114 – which would declare effective bankruptcy. The report continues: “The need to issue such a report will remain under constant review depending on the success or otherwise of the implementation of the actions set out above and taking into account whether the difficult decisions that will need to be made to set the 2027/28 budget are being addressed.”
It appears that the new Reform administration is considering raising Council Tax by less than the maximum allowed 4.99 per cent we have seen for the past four years. But the council says that for every one per cent that Council Tax is reduced by, an additional £2.7m would be added to the deficit in 2027/28.
The initial findings of the council’s Capital Plan review are also set out. Among them, proposals to axe the 2,200-capacity venue planned for Our Cultural Heart in Huddersfield town centre. The report explains that £23m remains for this part of the scheme which is “clearly insufficient”. Instead it is suggested that officers find an alternative use for this part of the site which will be brought back to Cabinet in the future.
Councillor Simon Brophy, Cabinet Member for Strategic Finance and Local Government Efficiency, said: “This report sets out clearly the financial legacy this administration is now picking up and the scale of the action needed to take control of the council’s finances for the future.
“I have already asked officers to review the council’s capital programme, with a view to reducing the forecast level of council debt. Service areas across the council have also been asked to identify efficiencies to reduce costs and ease the burden on taxpayers.
“This is the starting point for the budget-setting process that will conclude in March next year. Over the next few months we will put forward proposals for a new council budget and listen to feedback before any decisions are taken.
“In the meantime, we will be looking to eliminate wasteful spending and modernise the council so that our processes are as lean and efficient as possible.”
Cabinet will consider the financial strategy on October 6, 2026, with detailed budget proposals developed over the coming months ahead of a final budget decision in March 2027.