Kirklees Council's cabinet set to approve extra cuts as it looks to balance its books amid the cost of living crisis

At its meeting on August 15, cabinet members will consider a report on the council’s finances which will recommend a series of tough actions to reduce costs further.

If approved by cabinet members, new rules will come into force that restrict council spending to all but essential expenditure. Recruitment will also be further limited.

At the same time, the council will speed up the sale of some of its buildings and a further review of the organisation’s investment programme will aim to cut day-to-day costs.

Additional savings proposals, and options for maximising the council's income, will be brought forward in the months before it sets its next annual budget in early 2024.

Due to inflationary pressures and demands on services, the council currently forecasts an overspend of £20.3m on its £380m annual revenue budget for the current financial year.

Extra demand for services such as child protection and residential placements for children in care have been the main drivers for increased costs, alongside social care for older people and residents with learning disabilities.

Inflationary pressures on goods such as food for school catering services and IT equipment are also driving up costs.

Coun Paul Davies, cabinet member for corporate services, said: “Even though inflation has slowed marginally, prices are still increasing at a rate we haven’t seen for decades.

"Alongside additional demand for some of our most vital services and our need to protect our most vulnerable residents given the cost-of-living impact, we need to take action now to balance the budget.

“We are facing the fact that we are living in a new economic reality. High prices and punitive interest rates are now becoming a feature of our economy rather than a temporary blip.

"When you combine that with increasing demand on services and our long-standing central government underfunding, it means we have to take decisive action to balance the budget.

"Our budget for this year also included around £20m in savings from our bottom line. We’re achieving those savings but the external pressures on our budget are severe.

"We know next year’s budget will be just as, if not more, challenging.”