Bradford Councillors will be updated next month on the scale of the financial challenge faced.
The Council’s budget was agreed in March and is extremely challenging. It identified the need for an £80m Capitalisation Direction in 2023/2024 and £140m in the current year. This was required in addition to £100 million of assets disposals over the two years 2024/2025 and 2025/2026, as well as £49 million of savings in 2024/2025.
The first quarter finance report identifies that the council, like all other councils, is still facing increased demand. Against a savings target which is circa 10% of the Council’s net budget, the council is assured at this stage of delivering £40m plus of savings and is progressing against the delivery of the assets disposal programme. Both remain extremely challenging to deliver but must be delivered.
“We have been very clear that our finances, like many others across the country, are incredibly challenged due to increasing costs,” said Cllr Susan Hinchcliffe, Leader of Bradford Council. “All Council staff and partners have been making significant changes and financial savings in order to reach overall financial sustainability which is part of a five-year plan. We know in the short-term that more extremely difficult decisions will have to be made about the services that we provide and more savings will need to be made.”
Whilst the council is continuing to focus on delivery of all the in-year savings at quarter 1, there is a £17m projected overspend against the Departmental budgets. This £17m is offset by £8.8m of savings in the general fund, with the balance coming from within the contingencies included within the capitalisation direction.
The Council expects to come within the overall £140m capitalisation direction by the year end and every effort is being made to reduce this. The Qtr. 1 Finance Position Statement for 2024-25 will be presented to Bradford Council’s Executive on Tuesday, 3 September.
