Barnsley Council will balance its books despite £17.5m overspend - leader

Barnsley Council would not go bankrupt because of a £17.5m overspend, its cabinet heard

A council has measures in place to balance its books despite a predicted £17.5m budget overspend, its leader has said.

Barnsley Council's cabinet heard the shortfall was mostly due to pressures experienced in children's social care.

Council leader Steve Houghton said plans were in place to deal with "significant demands" on finances.

He said the council would produce a balanced budget by the end of the financial year in March 2024.

Mr Houghton told a meeting on Wednesday: "We're estimating to spend £17.5m more than we set in our revenue budget.

"This includes £12.7m for children's services, £3.5m for pay inflation and £1.3m for other costs.

"However, we have plans in place to deal with these through increased efficiencies and the use of reserves."

The Local Democracy Reporting Service said a document stated it was unlikely increased efficiencies alone would address cost pressures in full.

'Financial position remains sound'

The document said the shortfall would need to be addressed from a £7.4m reserve, set aside as part of the 23/24 budget setting process, with the remaining £10.1m funded from "a re-prioritisation of existing earmarked reserves".

Meanwhile, Councillor James Higginbottom, the cabinet member for environment and highways, said the financial difficulties did not mean Barnsley Council would be going "bankrupt".

At the meeting of Barnsley Council's cabinet, Mr Houghton called on the government to "recognise the huge pressures which exist in local government and reflect these in improved grant settlements to local authorities".

However, he assured cabinet members that unlike other struggling councils "Barnsley's overall financial position remains sound".

He said everything that could be done would be done, "including making some difficult decisions if necessary".

He added: "What I am saying is not only will we balance the books this year, but we'll balance the books next year and the year after, because we have a financial plan that does that."