‘Our position is not sustainable’: Wakefield Council to review service charges to plug £35.6m budget gap

The authority has warned that “difficult decisions” lie ahead in order to balance the books.

Senior councillors are to consider a report which predicts a shortfall of £35.6m in 2024/25.

The funding gap over the five-year period to 2028/209 has been put at £86m.

A mid term financial financial strategy (MTFS) report identifies measures designed to tackle the crisis.

The report says: “The council needs to maximise income from the fees and charges levied.

“In some cases, such as planning, these are determined by statute but in other cases, such as bereavement services, they are at the discretion of the council.”

In April, the council put an end to two-hours’ free parking at car parks across the district in order to generate revenue.

Other cost saving measures outlined in the 69-page document include a review of all directorates and how the council is structured.

A £2m reduction in the staffing budget across the authority has been identified due to “ongoing recruitment and retention challenges”.

The document also says that the council will have to “consider prioritisation” and warns: “This may lead to whether any services need to cease/reduce.”

Council leader Denise Jeffery said: “Every council in the country is facing huge financial challenges.

“Some have already run out of money.

“Our robust management and the tough decisions we’ve taken over the years mean that our finances are stable. But our position is not sustainable.

“Chronic underfunding and short-term decision-making from the government has left many councils on the brink.

“And some have gone over the edge entirely.”

Last month, Birmingham City Council declared itself effectively bankrupt by issuing a section 114 notice to signal that it does not have the resources to balance its budget.

In August, Kirklees Council announced a freeze on all essential spending to avoid a similar fate as it looks to make savings of £47.8m.

Almost half of Wakefield Council’s budget is being spent on adult social care as the authority says more vulnerable residents rely on its services than ever before.

Financial pressures have also been put down to inflation and interest rate rises.

Coun Jeffery added: “We’ve been having to use reserves to plug the gap for several years now.

“This can’t continue. We must have a sustainable budget, and the plan we publish today shows how we can do that if we tackle our big budget issues now.

“We are in a strong position because we know the challenge we need to meet.

“We will continue to drive savings and efficiencies across the council.

“But I am very clear that my cabinet and I have some difficult decisions to make to deliver a balanced, sustainable budget.

“We remain focussed on what matters most to our residents, and that will always come first.

“To do this responsibly we must continue to invest where we can, and be realistic about what we can and can’t do.

“By doing that now, and tackling the big budget challenge we face, we’ll be in a good position in the years to come.”

The cabinet will discuss the report at a meeting on October 10.