Councillors set out plan to deal with financial challenge
Our Cabinet has set out their plan to deal with the authority’s financial challenges at their formal Cabinet Meeting (6 September 2023).
They considered the council’s Medium Term Financial Strategy, which sets out the principles that the organisation will use to guide its financial decision-making over the coming months. The strategy aims to ensure the council balances its budget, remains financially stable over the next five years and prioritises its spending in line with its vision and values.
What is in the report?
The report outlines how we need to make £47.8M savings before setting our budget next year. Like most other local authorities,we have been hit hard by the cost-of-living crisis with pressures on energy, pay, goods and services. Those costs sit alongside increasing demands on services like social care for older residents and costs for children and young people who need extra support.
Earlier this month, we introduced tough new action to reduce spending. This included strict controls on all expenditure, freezing recruitment further and re-assessing future investment plans. The financial report will commit the council to bringing forward further savings proposals and income generation plans over the coming weeks. In order to set a balanced budget for the 2024/25 financial year.
The financial plan details the three key ways we will manage our finances. First, by growing the Kirklees economy. That means delivering new housing and making sure our infrastructure attracts further investment. We will also work with partners to make the most of the borough’s economic potential. A thriving economy brings revenue to the council and protects residents from future economic shocks.
The second strand means we will find more efficient ways of delivering services to residents and modernising the way we operate. That will mean cutting the cost of services by reducing management and administration costs as well as reviewing the scope of services we offer. It will also mean recovering a greater proportion of the costs from some services that are currently subsidised. And making sure we use technology and its assets in the most efficient ways possible.
The third part of the plan describes how we will prioritise funding towards people, families and organisations that need services the most and where they can have the most impact. This involves focusing on prevention and early intervention as well as targeting services more effectively.
Cabinet Member for Finance and Regeneration, Cllr Graham Turner, said:
“Every day, we’re hearing stories about councils facing significant financial pressures. It’s not just a local issue, it’s regional and national. In Kirklees, we’ve been open about our finances and how the cost-of-living crisis and our longstanding under-funding has given us particular challenges this year.’
“But this financial plan shows we’re facing up to the challenge. Over the past few months, we’ve taken urgent action to address the immediate financial issues and this updated strategy will build on that work to safeguard the financial future of the council, which is key to delivering all our services. Growing our economy, making efficiencies and prioritising spending will be key to overcoming the pressures we face and setting the council on a firm financial footing.’
“There are tough decisions to come. But we will continue to be open with residents and keep putting pressure on government to give Kirklees residents the fair deal on funding they deserve.”