Barnsley council tax increase considered due to potential £25m overspend

Barnsley Council is considering increasing council tax

Council tax and rents in Barnsley could be set to rise as the local authority tries to plug a widening spending gap.

The authority spent £10m more than it anticipated in the last financial year and predicts it will have a £25m gap over the next three years.

Higher service charges and the sale of community assets are also under consideration, a council report says.

Council leader Sir Steve Houghton said there would be "difficult decisions to make".

The council report being considered on Wednesday says: "These include but are not limited to increases in council tax, increases to housing rents, introducing or increasing charges for discretionary services, stopping or paring back discretionary services that people rely on the most and disposing of underutilised assets within our communities."

'Incredibly challenging'

Sir Steve said: "We're not immune to the challenges faced by many councils in the UK due to the impact of more than a decade of funding cuts, demand for services linked to national issues and the economic uncertainty.

"We have a legal and moral obligation to safeguard our ongoing financial sustainability, making sure that we continue to provide excellent services for our residents and avoid the even worse position faced by other councils up and down the country."

Nationally, a number of councils - including Birmingham, Croydon, Slough, Woking and Nottingham - have recently issued Section 114 notices, effectively declaring themselves bankrupt.

Barnsley is not yet at risk of that, but the report to councillors said it has had to deliver services in "incredibly challenging circumstances".

The council has already made savings of more than £130m a year over the past decade.

The report to cabinet says: "With no end in sight to the ongoing cost pressure and funding position, there is a limit to what this approach can continue to achieve."

Proposals to balance the 2024/25 budget will be presented to full council for approval on 29 February, with a detailed plan for balancing the position over the longer term being produced for broader consultation later in 2024.