Hard choices looming if Calderdale Council budget overspends continue

Funding rising all-age disability costs and an increased number of expensive external placements for some of the borough’s most vulnerable looked after children is giving councillors a financial headache.

Current monitoring at the council year’s half way point indicates the council is facing an overspend of around £4.3 million by the year’s end.

Cabinet heard the bulk of overspends were in the Adults and Wellbeing directorate (£2.7 million) and the Children’s and Young People’s Services directorate (£1.2 million).

All age disability costs are up £1.5 million on last year and include £625,000 worth of care packages while in Children’s and Young People’s Services an exceptional increase of seven new looked-after children external placements have to be funded adding £750,000 to the budget.

These are statutory duties and ones councils want to undertake as they affect some of the most vulnerable people in the community.

But in Calderdale there is almost no little scope left for drawing on the council’s reserves meaning the council faces making cuts elsewhere in its budget to plug the gap.

Cabinet member for Regeneration and Resources, Coun Jane Scullion said: “I have to say, the news is not good.”

The council was still hoping for “a rainbow on the horizon” in the shape of a long promised Government green paper which pledged to address social care issues, which the council has been told previously are affecting authorities throughout the country.

In a civilised society people should be looked after well, but it is expensive, she said.

Coun Bob Metcalfe (Lab, Town), Cabinet member for Adults, Health and Wellbeing, said the pressures on his department’s budget were “alarming” and hard work was going in the directorate to address these funding questions.

It was now 1,000 days since the Government had promised to deliver its green paper addressing social care, he said.

Coun Scullion (Lab, Luddenden Foot) said for its part, directors and Cabinet members had been told they would be pressed hard to make savings.

She hoped measures would not have to be taken, but they had to be considered.

“We are going to have to take further action such as short term spending restrictions – hopefully none of them may be needed,” she said.

Budget out-turn figures would be discussed again in January and before that at a scrutiny meeting at the start of December, said Coun Scullion.

There is better news regarding the council’s capital programme, which expects a deficit to be covered by money expected in and with an additional £1.7 million to offset borrowing costs on town centre projects.

Councillors heard that in context the council had had to make savings of £114 million since 2010 and already directorates were having to make savings of £7.3 million in the current year.