Economy crisis: Stark warning over Calderdale Council's finances

The council has already put plans in place to make savings of £120 million by 2023/24 compared to its 2010 budget.

It is currently forecasting that further savings of £10.2 million, £12.9 million and £18.4 million will be required in the financial years to 2025/2026.

The effects of inflation, the cost of living crisis and the lack of longer-term Government funding allocations are all being felt, says the council.

“The risk to the council’s financial position is incredibly serious,” said Councillor Jane Scullion, Calderdale Council’s Deputy Leader.

"Realistically, Government support for the crisis that is unfolding is necessary and will be vital to how Calderdale and other councils will weather the storm.”

Every autumn, the council updates its Medium Term Financial Strategy (MTFS).

This is the starting point for setting the council’s budget over the next three years and forecasts the resources that might be available to deliver the council’s priorities and Vision2024 for Calderdale.

It says the level of uncertainty around the council’s medium term financial planning has been exacerbated this year by rising inflation, the cost of living crisis and the absence of longer-term Government cash.

There are also organisational uncertainties around the introduction of the integrated health and care system, says the council, and potential future changes to the funding of social care.

The combination of these factors - and increasing costs – mean that substantial funding gaps already exist for most local authorities.

“The MTFS is a forecast based on what we know now and is not the budget that will be set at Budget Council in February 2023,” said Coun Scullion.

“However, deficits of this scale have not been seen by the council since 2011 when austerity began in earnest.

"This year there is almost unprecedented uncertainty about the timing and extent of Government help towards the cost of living crisis.”

The council says its financial position may change over the next few months and the budget proposals will be adapted accordingly.

The proposed MTFS will be discussed at Calderdale Council’s Cabinet meeting on Monday, October 10 at Halifax Town Hall from 6pm.