Council tax will rise and a museum could be closed as the council seeks to slash more than £100m from its budget.
Leeds City Council is proposing to close Abbey House Museum in Kirkstall as it faces unprecedented strain on its finances.
Job losses, building closures and a council tax rise of almost five per cent are also being considered by the authority.
Last figures show the council needs to save £106.4m during 2025/26 to avoid having it declare itself bankrupt. The council already had to save almost £64m in the current financial year.
Council leader James Lewis said visitor numbers at Abbey House had dwindled in recent years. He said: “We’ll still have seven museums and gallery sites across Leeds that people can enjoy. Sometimes you have to make hard choices.”
Cllr Lewis, Labour member for Kippax and Methley, said the existing collection at Abbey House would be made available elsewhere.
The council said the rising cost of placing children in residential care was a drain on its finances. In Leeds, the annual cost of external residential placements rose by 75 per cent in the past four years to £119m this year. The council was spending around £6,300 per week on some of the placements.
A council report said the authority could save £15m next year by reducing the number of children in the care system and looking after more youngsters locally.
Cllr Lewis said: “We’ve seen the costs of private sector external residential placements go through the roof. Government inquiries have shown it is in many cases companies making really excessive profits.”
The council said it was planning for the equivalent of 243 full-time job losses, and could not rule out compulsory redundancies. Cost savings also include a “pay as you feel” policy at city centre museums and galleries.
A report to the meeting said the Abbey House museum closure could save £160,000. The council could also lease out Middletown Leisure Centre to save £220,000. Nearby Laurence Calvert Academy would take over some services at the centre under the arrangement.
Council tax would rise by 4.98 per cent, of which 1.99 per cent would be dedicated to paying for adult social care.
The latest proposals will be discussed by the council’s executive board at a meeting on Wednesday (11 December).
Cllr Lewis said the council would learn more about government action to support council finances later this month.
