Council tax to increase by almost five per cent as Barnsley’s budget has been ‘difficult’ to balance

Council tax bills in Barnsley could rise by almost five per cent from April in a bid to protect services, a report has suggested.

A 2.99 per cent hike in basic council tax and an additional two per cent earmarked for adult social care are both proposed in the authority’s budget report for 2024-25.

If approved by councillors, the owner of a band D property would need to pay an additional £85.11 a year.

BMBC expects to spend an extra £35 million on day-to-day running costs next year, and said that even with additional government funding, it cannot meet the costs of ‘increased demand’.

Council leader Sir Steve Houghton said that increasing council tax is ‘an incredibly hard decision’, but without the extra income, services may have to be cut.

“It’s getting increasingly difficult to balance the budget. The bulk of our revenue budget, which supports our day-to-day services, comes from council tax, government grants, fees, charges, and some proportion of business rates,” he said.

“Still, this total has not kept up with the demand for our services, the increasing price of materials and utilities as well as the cost of living crisis and the impact of that on you, our residents.

“In the last two years, the cost of children’s and adult social care services has risen by £40 million. That stretches any organisation.”

The total rise is the five per cent maximum councils can hike council tax by each year without a referendum.

Finance chief Neil Copley wrote in his report that BMBC has used £34M of its own reserves to prop up the budget in the past two fiscal years, which he says is ‘unprecedented’ and ‘unsustainable’.

This year, the council will use £26m of its reserves to prop up the budget, which Mr Copley has only agreed to on the basis that a ‘robust’ savings plan is put in place.

Which services are putting the biggest strain on Barnsley Council’s budget?

Children’s services – £14.9m overspend

The proposal states that savings of £2.6m will be made from the children’s services budget, through increasing the number of in-house foster carers, developing a new children’s home, reducing residential care placements, and ceasing the use of agency staff.

The report adds that the number of looked-after children in the borough has increased by 17 per cent since last year, putting a strain on the budget.

It adds: “The demand and cost of Looked After Children / Children’s Services has increased exponentially in the past two fiscal years.”

Pay – £8.9m overspend

BMBC has set aside an extra £5.5m to cover staff pay during the financial year, following an increase in the pay award.

The amount the council spends on pay is expected to increase by five per cent this year, which will be kept ‘under review’, to ‘reflect the ongoing ‘cost of living crisis’ set against the anticipated real-term reduction in local government funding.

Adult social care £6.6m

An increase in staff pay, inflation and energy costs are responsible for pressures on the adult social care budget.

The two per cent increase will partially cover the overspend, as will government grants.

The budget will be considered by cabinet on February 7, and is subject to full council approval.