Concerns over budgets and pressures on Calderdale Council's spending highlighted as inflation rises

Calderdale Council Cabinet member for Resources, Coun Silvia Dacre referenced national comments made about local government funding ahead of the Government’s financial statement this week.

Local authorities will soon find out what arrangements will be put in place to fund them.

Coun Dacre (Lab, Todmorden) was presenting a revenue budget report to Cabinet which currently forecasts a deficit of £3.5 million and actions which were being taken to mitigate that.

In terms of the settlement for councils, she said the Local Government Association – whose Chair is Central Bedfordshire Conservative councillor James Jamieson – had recently said inflation on top of austerity is a serious risk to the viability of services and councils.

“An indication of how serious the position is for us and other councils across the country,” she said.

UK inflation this week hit 11.1% as energy bills and food prices continued to drive up the cost of living, new figures showed. It means prices have risen 11.1% in the year to October, up from 10.1% the previous month

Cabinet agreed to note the revenue budget position, and that departmental directors will scour their budgets for savings, and also to earmark a £208,000 refund – from HM Courts and Tribunals Service for liability orders – for the council’s welfare assistance budget to support Calderdale’s most vulnerable people during the cost of living crisis.

Coun Josh Fenton-Glynn (Lab, Calder) said the report showed the kind of challenges facing Calderdale and other local authorities.

“It is quite grim reading but it is worth underlining the point it is not unique to Calderdale,” he said.

The report noted where overspends were and also shortfalls of projected income, particularly revenues brought in by sports services only being back to 74 per cent of budget compared to 99 per cent pre-Covid, and income from parking only at 73 per cent against budget compared to 91 per cent before the pandemic, which saw more people starting to work from home.

Other big cost pressures across other directorates remain all-age disability care packages, external residential places necessary for some looked-after children, greatly increased costs of special needs transport and increased energy costs.

Cabinet also agreed endorse the council’s equality and diversity policy statement, and to refresh its climate policy.