Kirklees Council is predicting an over-spend of around £13 million this financial year and is still working on ways to cut costs and raise revenue.

The council has a total budget of £278.7 million and plans to spend some of its cash reserves to keep the over-spend under control.

Speaking at a meeting of the council’s Cabinet, finance chief Clr Graham Turner outlined the position after the first quarter of the 2024-25 financial year.

He said: “We are predicted to over-spend by £18m this financial year however with the draw down of reserves and the use of some contingencies we are looking at a potential over-spend of £12.9m.

“I am working hard with the financial team and the rest of Cabinet to reduce the over-spend and I will do all I can to deliver a positive outcome at year end.

“This is not without its challenges as we are, in part, a demand-led organisation and we are still seeing some rise in demand in some parts of the organisation which we have a legal and moral obligation to meet.

“We need to ensure that we reach a balanced budget if at all possible to ensure that we don’t have to use our reserves.”

 

 

The council is predicted to have total reserves of £60.5m by the end of this financial year of which £35.5m is earmarked.

Clr Turner (above) added: “We are predicted to have a £25m unallocated reserve position as long as we don’t have to use it for in-year spending.

“It’s important we maintain a healthy reserves position hence the importance of delivering a balanced budget so we don’t have to use our reserves or, if we do need to use those reserves, as little of those precious reserves as possible.”

Clr Turner said the recent cut in interest rates of a quarter of 1% would help a little, as would another cut before the end of the financial year.

He added: “Clearly the economy is starting to move in the right direction in line with the current government’s new policy and direction.”

A council report highlighted some areas where proposals to improve the financial position hadn’t come through.

These included moving to community-run libraries in some towns and villages and also introducing charges in 57 free council car parks. The introduction of parking charges in villages such as Honley, Meltham, Lindley, Golcar and Slaithwaite has been paused for a review.

In the parks department the council is cutting jobs and seeking to re-deploy staff into other roles within the council to save £1.3 million. The move is due to be completed by October 2024.

The council imposed a recruitment freeze on non-essential posts and that’s been lifted in the highways department to employ more parking enforcement officers.

The council has budgeted to give its staff a 4% pay rise which will cost £10 million. Pay awards are decided nationally and are outside the council’s control and every 1% costs the council £2.5 million.

 

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