Calderdale Council makes decision on preparing an emergency budget

Among items being discussed were three linked financial reports, a Financial Recovery Plan which looks at ways to reduce and eliminate budget overspends, a recommendation to council to approve a Mid Term Financial Strategy (MTFS) and a report called The Future Council.

The latter looks among other things about how services can be re-opened safely during the COVID-19 pandemic.

All three reports consider ongoing financial impacts and going forward the council could face an estimated deficit of between around £15 million in 2021-22, which has implications for services.

Cabinet member for Resources, Coun Silvia Dacre said it was recommended Cabinet note the Financial Recovery Plan position.

“The financial situation has eased to a degree.

“It is now not the case that we are looking at urgent budget spending decisions or a Section 114 notice – that has also receded, at least for the time being,” she said.

A Section 114 notice would mean the council only providing services it was legally obliged to provide.

Last week at the council’s Strategy and Performance Scrutiny Board, Head of Finance, Nigel Broadbent, had told councillors his opinion that an emergency budget would not be needed this year.

However, Cabinet heard councillors could in the near future be asked to make some “unpalatable” choices.

Coun Dacre (Lab, Todmorden) said the approaching financial situation was subject to a large degree of uncertainty until the Government makes its autumn statement on funding for local authorities and ongoing effects of the pandemic.

The base deficit figure was estimated to be around £15 million, with a best case scenario of an £8 million deficit and a worst case scenario of a £20 million deficit, she said.

Whichever position transpired, said Coun Dacre, “the report is quite clear we need to start planning, that uncertainty is not an excuse and if we leave it until after the autumn statement we leave ourselves too much time to make up.”

Councillors agreed to recommend to council that the MTFS, which covers three years’ worth of budgets, be adopted when it considers it.

Leader of the Council, Coun Tim Swift (Lab, Town) pointed out the background of more than £100 million of cuts to services which had already had to be made already in last decade and councillors heard ongoing financial issues included lost income and Council Tax and Business Rate receipts because of the pandemic.

Cabinet heard The Future Council report looked at which services could be safely opened during the pandemic, which the council should stop providing and which could be mothballed.

Liberal Democrat group leader Coun James Baker (Warley) said he accepted difficult situation the council was in and agreed Government should provide more support to council.

However, he urged that local people, communities and ward councillors with detailed knowledge about their areas should be consulted as well as council staff and officers about which services can be maintained.

Coun Swift said Cabinet was looking to bring more detailed reports on the situation to October’s Cabinet meeting so people could see a fuller picture.