Deteriorating roads, waste and recycling costs and spiralling care prices giving Calderdale Council financial headache

When they meet on Monday, cabinet members will get their second quarterly financial forecast for the year, which shows the deficit on day-to-day spending increasing.

By the end of the year, the council is facing an in-year deficit of £10.8m - up from the £8.4m estimated after the first quarter.

The senior councillors are told although good progress is being made to achieve savings proposed in the 2024-25 budget, costs in key areas are rising, even where extra cash was included in the budget to cover estimated rises.

The big overspends are in the adults and well-being, children and young people’s services and public services directorates.

The adults and well-being service is set to overspend by around £2.7m, according to the latest projections, with all-age disability and mental health packages overspending by around £3.1m – although savings are being made elsewhere in the directorate.

A large part of the £4.4m estimated overspend in children’s services is the cost of packages and placements – currently £4.3m over budget, with a reason being the high cost of very expensive specialist placements required to meet some children’s needs.

This year, this has included some secure provision to meet complex needs, councillors are told.

Other public services items busting budget are waste and recycling costs and highways spending because deteriorating road surfaces requiring repair.

Good progress is being made on savings needed in this year’s budget, with, as of September 30, around 83 per cent of the £3.13m savings required in 2024-25 being achieved and the remaining 17 per cent actioned and expected to be achieved.

That leaves the question of how to mitigate particularly increasing demand for the various types of care.

Councillors are told officers continue to tighten spending and work to transform the way the council works – a smaller council but one able to adapt to challenges by being flexible in the way it works, say officers.

A worst-case scenario is the council having to plug the gap by using some of its corporate reserves but councillors are frequently warned these can only be spent once and relying on them is not sustainable long-term.