Barnsley Council reveals a £17.5m overspend but leader insists: 'It's been taken care of'

Barnsley Council’s cabinet yesterday (September 20) heard that the council was forecasting a £17.5m overspend for this financial year – mostly due to “pressures being experienced in children’s social care”.

The overspend comprised the increased cost of said children’s social care, growth and sustainability, cross council pressures (employee pay, etc) and core directorate (such as additional legal costs).

A document states: “To help mitigate the above cost pressures it is recommended that a formal moratorium on expenditure be implemented, including tighter controls on procurement and recruitment expenditure.

“However, it is unlikely that the above will address the £17.5m cost pressures in full, so in line with the agreed financial strategy, these pressures will need to be addressed in year from the £7.4m reserve set aside as part of the 23/24 budget setting process, with the remainder (currently £10.1m) being funded from a re-prioritisation of existing earmarked reserves.”

At the meeting, Coun James Higginbottom, the cabinet member for environment and highways, said the pressure didn’t mean that Barnsley Council would be going “bankrupt”.

In a statement, Coun Steve Houghton, the leader of the council, said: “Additional services pressures have put significant demands on the councils’ finances. We’re estimating to spend £17.5 million more than we set in our revenue budget.

“This includes £12.7 million for Children’s Services (including legal services and business intelligence costs), £3.5 million for pay inflation and £1.3 million for other costs.

“However, we have plans in place to deal with these through increased efficiencies and the use of reserves. This means that the council remains on course to produce a balanced budget by the end of the financial year in March 2024.

“Unlike other councils that are struggling to meet these demands, Barnsley’s overall financial position remains sound.

“These increased costs will need to be included in future financial planning. This means the council will need to continue with its efficiency drive and look at ways to transform and reshape services if that strong financial position is to be maintained.

“Equally, the government will need to recognise the huge pressures which exist in local government and reflect these in improved grant settlements to local authorities. This will be needed to make sure the sector overall can continue to meet its statutory obligations.”

In addition, Coun Houghton, the leader of the council, told the cabinet that they would do everything they could – including making some difficult decisions if necessary – to address the situation.

The Local Democracy Service reached out to him and asked what “difficult decisions” would mean for Barnsley.

He said: “In terms of the £17.5m that’s been taken care of. That’s already done so we’ve got no big issues around that.

“We’re just making sure people are aware of the pressure that exists on children’s (services).

“When I was talking about ‘difficult decisions’ I was thinking two or three years down the track – not now.

“But 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.

“I’m also saying that you cannot guarantee it forever… the pressures that are on councils continue to grow so if we are going to maintain those stable positions, the government’s got to look at how it’s funding children’s and adults’ services.”

He added that last year’s overspending had been “less than half” of this year’s as they were seeing the demands continuing to grow.

Coun Houghton said: “We put money aside to cover it which is why we can deal with it.”

He said whoever wins the next general election would have to “recognise that the councils around the country are under huge pressure”.