Council warns it expects £3m budget gap during next financial year
Wakefield Council has warned it faces a £3.1m budget deficit during the next financial year.
But the local authority said it was in a “strong position” to balance its books during 2026/27 despite needing to make £12.6m of savings over the 12-month period.
Details of the council’s spending plans are outlined in a financial strategy document to be considered by senior councillors next week.
Denise Jeffery, leader of the Labour-run council, said: “Responsible financial management involves taking some tough decisions and we’ve stepped up to this challenge during more than a decade of austerity.
“That’s enabled us to continue to focus on what’s important to our residents, delivering on the things that matter the most in our local communities.
“We’ll continue to act responsibly. Our experienced leadership puts us in a strong position to balance our budget and keep delivering the services you rely on.”
The report highlights the council’s key challenges over the next five years, with finance officers predicting an overall budget gap of £78m for the period.
A council statement said “more vulnerable residents than ever before” relied on support from from its social care services.
“These are statutory services which must legally be provided regardless of the budget position and the demand is at record levels,” it said.
“The economic climate is also affecting council finances.
“Inflation continues to increase the cost of providing many local services.
“Higher interest rates are affecting the costs of servicing debt, including money borrowed for the council’s capital programme.”
The council’s cabinet members will consider the report at a meeting on November 18.
Initial budget proposals are expected to be set out in January following the announcement of the local government finance settlement, which informs councils how much money they will receive from government.
The proposals would then go to a public consultation before final plans are voted on at a Budget Council meeting in March.
Earlier this year, the council agreed to cut 270 jobs in a bid to make £29m of savings when the budget for 2025/26 was approved.
Councillors also voted in favour of a maximum 4.99% council tax rise as part of efforts to plug a £39.9m gap during the current financial year.