Budget woes worsen as council has to find extra £6m to fund services next year

A new report to be presented to the council’s cabinet next week reveals that Barnsley Metropolitan Borough Council (BMBC) expects to exceed its budget for 2024/25 by an extra £6 million on top of the previously estimated £19m.

To address the gap, cabinet is asked to approve taking £636,000 from its savings. However, with government funding for the next financial year still unknown, council departments are being tasked with reviewing their services to find more savings.

Children’s services is one of the departments facing spiralling costs. Despite a decrease in the number of children in care in the borough, the cost of residential placements and fostering settings have increased.

Children’s services are particularly hard-hit, despite a reduction in the number of children in care, as the cost of residential placements and fostering services has risen.

The report highlights that the cost of placing children in external residential care has increased due to a shortage of available placements, with some costing over £8,000 per week. In addition, the council is spending more on supporting young people leaving care, due to a lack of affordable housing and delays in processing asylum claims.

The council’s environment and highways department is also facing a £1.8m shortfall, due to increased waste collection costs, and higher operational costs.

BMBC’s environment and highways department is also facing financial pressures, with a £1.8 million shortfall attributed to rising waste collection costs and higher operational expenses.

The report also states that the council holds £30.5 million in unapproved funding, mostly from developers and school grants, which will be allocated to specific projects once the necessary approvals are made.

The council expects to save £3 million through service improvements and a review of its assets including buildings and land.