Kirklees Together

At its meeting next Tuesday (27 June 2023), Kirklees Council’s Cabinet will assess the impact of the cost-of-living crisis on the authority’s finances.

Senior councillors will count the cost of recent economic upheaval when they consider the council’s formal financial outturn report for the 2022/23 financial year.

The report sets out how the council recorded a £27M overspend on its £350M revenue budget in 2022/3. Most of the overspend came as a result of the financial pressures caused by the cost-of-living crisis alongside extra demand on council services. The results are in line with the financial forecasts made by council finance chiefs over the past nine months.

Inflationary pressures on pay, energy, goods, and services added an extra £15M to the council’s budget over the course of the year. Extra demands of services like roads maintenance, services for children with extra needs, and funding for home care services added a further £12M to the council’s budget.

As set out in its budget earlier this year, the council has used its reserves to offset the overspend as well as setting out savings for services across the council in the current financial year. 

Cllr Paul Davies, Cabinet Member for Corporate Services, said:

“Every household and local authority in the country has been affected by the extraordinary economic pressures we’ve seen over the past year.

“In Kirklees, we’ve been prudent over the years and are in a position to use our reserves to offset the unpredictable and unforeseeable challenges we’ve faced.  We’ve also taken decisive action to reduce costs on recruitment, buildings and the costs of services with further savings set out in our budget for this year.

“Despite the challenges, we’ve continued to focus on supporting the residents and organisations that need us most, whether that’s through our core services or additional help like the Household Support Fund. Crucially, our infrastructure investment in town centres across Kirklees will also give us the best possible protection against future cost of living crises.  

“But we owe it to council tax payers to be open about the future. The economic outlook for our country remains bleak. Inflation is still high and will continue to add pressure to budgets. At the same time, demand for services is increasing. And the national funding formula for councils in England continues to penalise Kirklees and its residents every year. It means the next twelve months look every bit as tough as the last.”