BARNSLEY Council leader Sir Steve Houghton says he is ‘pleased’ the needs of local authorities have been recognised in the government’s budget - but admits that finances are in an ‘extremely difficult’ position and decisions will need to be made.
Last week, Chancellor Rachel Reeves revealed the first Labour budget in over a decade.
Some of the key aspects of the budget include raising the national living wage, raising employers’ national insurance contributions and an additional £1.3bn in grant funding for local councils, including £600m for social care.
Sir Steve said: “I’m pleased that the needs of councils have been recognised.
“This will help us focus on maximising the opportunities to drive Barnsley forward as the place of possibilities, although it’s clear that many challenges remain.
“Council finances are in an extremely difficult position.
“Both national and local governments need to make difficult decisions to help reverse years of financial decline and ensure resources are finally going to the right places.( “It’s good to see that issues that impact councils across the country, such as increasing demand in children’s social care services and supporting SEND children and families, are starting to be addressed.
“There’s a long way to go, and significant reforms are needed in these areas to go alongside the investment, but it’s a step in the right direction.( “The funding announcements also help us achieve our local priorities for Barnsley.”
Sir Steve added that the council are currently looking exactly at what the budget means to them - but are ready to make some difficult decisions to keep front-line services.
He said: “Over the coming weeks, we’ll be unpicking what this budget means for us as a council, but we know that there are areas which will impact our services and that will need careful consideration and future planning.
“For example, starting in April 2025, the government will increase the amount that employers contribute towards national insurance costs.
“Costs for the people we directly employ will be covered, but this will significantly impact the costs of our suppliers, including adult social care providers.
“At Barnsley, we have a track record of being bold, brave, and innovative.
“We have the same financial pressures as any other council, but our focus is on restoring our long-term financial stability.
“We face significant financial challenges with currently a £19m gap in our budget, but we have a comprehensive, flexible plan to balance our budget and deliver efficiency savings.
“This will mean making difficult choices, but we’re focused on safeguarding front-line services and prioritising people who need the most support.”
