Barnsley Council Faces £6m Increase in Budget Shortfall

Barnsley Council’s financial outlook has deteriorated beyond initial projections, necessitating the identification of an additional £6m to support services in the upcoming year. This information has recently come to light. According to a new report scheduled for presentation to the authority’s cabinet next week, the council anticipates exceeding its budget for the 2024/25 fiscal year. This is attributed to unforeseen expenses across multiple departments. Consequently, the budget funding gap could be greater than the council’s previous estimate of £19m. To mitigate this deficit, the cabinet will be requested to authorize the use of £636,000 from its existing savings. Furthermore, departments have been instructed to review their services to identify additional savings, particularly as the level of government funding for the forthcoming financial year remains uncertain. The report indicates that children’s services constitute one of the departments experiencing escalating costs, even though the number of children in care throughout the borough has decreased. The Local Democracy Reporting Service states that this service has been significantly impacted by the increasing expenses associated with residential placements and fostering services. The report specifically noted that the cost of placing children in external residential care has risen due to a scarcity of available placements, with some individual placements exceeding £8,000 per week. Additionally, the council is incurring higher expenditures for supporting young people transitioning out of care, a situation exacerbated by a shortage of affordable housing and delays in the processing of asylum claims. Furthermore, a deficit of £1.8m has been identified within the authority’s environment and highways department, attributed to increasing waste collection expenses and elevated operational costs. The report also mentioned that the council possesses £30.5m in funding that is currently unapproved, primarily derived from developers and school grants. This sum is designated for allocation to specific projects once the requisite approvals are secured. The report stated that the council anticipates achieving £3m in savings through enhancements to services and a comprehensive review of its assets, which encompass buildings and land.