‘DIFFICULT’ decisions will have to be taken in order to balance Barnsley Council’s books in the coming years after significant financial pressures - which run into millions - were recorded.
Latest accounts show at the end of the second quarter of 2024/25, a black hole of £6m was identified but it’s been warned the gap will continue to widen into the financial year.
A report, which will be discussed by a scrutiny panel next week, will see council finance bosses Neil Copley, Steve Loach and Wendy Popplewell answer questions on what is being done to balance the books.
The bleak picture comes just weeks after the council announced it had been successful in obtaining £8m from the government’s so-called Recovery Grant initiative, which channels cash to worst-hit local authorities.
The extra money allowed the council to make no cuts to services and subsequently no job losses, while key services will be maintained going forward.
However the report warned £34m is needed just to maintain ‘ordinary’ services and a raft of measures have been proposed to save cash such as dimming street lighting, a 4.9 per cent council tax hike, increasing the price of staff parking, removing mobile phone provisions for employees and councillors, and ceasing the publication of its Spotlight magazine.
The package - which is part of the council’s annual budget - will save £13m.
The report said: “The current position at quarter two reported further budget pressures of £6m and rising over and above this.
“Total cost pressures for 2025/26 stand at £34m - this is just to maintain services at current levels and are included within the council’s revised net budget of £282m.
“The council received an uplift in funding from the government, including a new one-off Recovery Grant.
“Although the 2025/26 budget position is more positive than at any time since the start of austerity, the future position remains uncertain.
“For example, the outcome of the forthcoming spending review and funding reforms are not yet known, whilst pressures also remain in many demand-led frontline services such as social care.
“Consequently, the council will undertake a full and detailed budget review in 2025 to ensure that it remains financially sustainable, should any of those things present further financial challenges in the future.”
Sir Steve Houghton, Barnsley Council’s leader, added: “We’re proposing a balanced budget for 2025/26 but we still need to make difficult choices to keep delivering the services that people need the most./
“We received some additional government funding, which has reduced some of our financial pressures and provides welcome relief to places like Barnsley, which have disproportionately lost funding compared to wealthier areas during the years of austerity under the last government.
“However, this funding is likely to be a one-off, as the government is doing a full review of all spending on public services this year.
“We estimate we’ll spend £34m more on day-to-day running costs next year and we’ve set aside money to help pay for extra demand and increased costs.
“The 2025/26 budget proposals will be considered at cabinet on Wednesday, before being presented to full council on February 27.”
