Kirklees Council is forecasting a £13.6 million overspend this year – even after factoring in the use of £5.2m from its reserves, as its new administration warns difficult spending decisions lie ahead.
The latest figures have again put the state of the council’s finances under the spotlight, with mounting pressures in adult and children’s social care continuing to drive up costs.
An update presented to Cabinet on 8 September revealed that, at the end of the first quarter, the council was forecasting a £13.6m overspend for the financial year.
That figure already assumes £5.2m will be drawn from reserves.
And a report presented to councillors warns it is “unlikely” the remaining overspend will be brought back in line with the agreed budget before the end of the financial year.
This means the council could have to fall back on further reserves to balance its books – money which will subsequently need to be replenished.
Kirklees Council has faced significant financial pressures in recent years, with the authority having to find £47m when its financial challenges peaked in 2024/25.
While its position has improved since then, the new Reform administration has taken control at a time when substantial financial pressures remain.
Councillor Simon Brophy (Reform, Denby Dale), Cabinet Member for Strategic Finance and Local Government Efficiency, described the council’s current position as a “significant concern” and said the administration was prepared to make difficult decisions to address it.
He told the meeting the biggest pressure remained demand-led spending on social care.
The Adults and Health and Children’s and Families directorates are forecasting a combined overspend of around £19m.
Cllr Brophy said this reflected increasing demand, greater complexity of need and difficulties delivering some savings agreed under the previous administration.
Elsewhere, the council’s finances appear more stable.
According to the report, Place, Public Health and Corporate Resources, along with central budgets, are expected to either balance or underspend – helping to partially offset the pressures elsewhere.
Cllr Brophy said the new administration was committed to bringing the council’s finances under greater control.
He added: “We remain committed to reducing the council’s forecast level of debt and the leader has already outlined to me that we will apply rigorous tests to future spending to maximise economic benefits across the whole of Kirklees and reduce the pressure on taxpayers in the future.”
A series of measures aimed at tightening spending are now being implemented.
These include further controls on recruitment, with all posts requiring approval from members of the Executive Leadership Team, as well as reviews of overtime and agency spending.
The council will also restrict spending to essential expenditure and keep its Capital Plan under ongoing review.
The financial position will become clearer over the coming months.
An updated Medium Term Financial Strategy is due to go before Cabinet in October, followed by draft budget proposals for 2027/28 in December.
