Council faces £19m funding gap, leader warns

Barnsley Council leader Sir Stephen Houghton said increased National Insurance costs could have an impact on the authority

Barnsley Council is facing a £19m funding gap and must make "difficult choices", its leader has said.

Sir Stephen Houghton said the authority faced financial challenges but had a "flexible plan" to help it balance its budget.

He said the government's recent Budget would help to address pressures in areas including children's social care and special education needs and disabilities (SEND) services.

Chancellor Rachel Reeves announced £1.3bn extra funding next year for local councils alongside tax rises worth £40bn to fund the NHS and other public services in September.

Houghton said the government announcements were a "step in the right direction" but added there was a "long way to go".

"Both national and local governments need to make difficult decisions to help reverse years of financial decline and ensure resources are finally going to the right places," he said.

But Barnsley's finances were in an "extremely difficult position," he added.

'Significant impact'

The council highlighted rises in the amount that employers contributed towards National Insurance as an area that would affect its finances.

“Costs for the people we directly employ will be covered, but this will significantly impact the costs of our suppliers, including adult social care providers," Houghton said.

Reeves admitted that tax rises would be likely to hit wage growth for workers.

Earlier this year, Barnsley Council said it had spent £10m more than anticipated in the previous financial year and predicted a £25m gap over the next three years.

The authority had a "comprehensive, flexible plan to balance our budget and deliver efficiency savings," a spokesperson said.

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