Kirklees Council restricts all non-essential spending and recruitment

A cash-strapped West Yorkshire council has approved recommendations to restrict all non-essential spending.

Kirklees Council warned if costs continued to grow and savings were not made, it would have to issue a Section 114 notice, effectively declaring itself bankrupt.

However at a meeting on Tuesday, councillors said they would do whatever it took "to weather the storm".

The council recorded a £27m overspend on its budget in 2022/23.

The report warned that "the seriousness of the council's financial position cannot be understated".

Paul Davies, cabinet member for corporate services, told the meeting: "This report spells out the reality of our financial situation and the practical steps we need to take to set a balanced budget."

Mr Davies said the authority had already put measures in place to reduce costs, but it was "now very clear we need to go further".

The recommendations, which the report said were necessary to avoid having to issue a Section 114 notice, included restricting all non-essential spending and recruitment, and speeding up the sale of council-owned buildings earmarked for disposal.

According to the Unison union, around 250 jobs were expected to be lost as a result of the overspend.

Leonie Sharp. regional manager for Yorkshire and Humberside, said: "Job losses mean the loss of vital local services for the community, it's as simple as that.

"After 13 years of underfunding, local authorities have no meat on the bone left to cut. We can't see any way cuts at the council can be made without dire consequences.

"Services can't take any more cuts - and putting workers through this anxiety during a cost of living crisis is just cruel."

Vowing to "weather the storm", Mr Davies accused the government of "losing control of our economy and public services", leaving councils up and down the country struggling to balance the books.

A spokesperson for the Department for Levelling Up, Housing and Communities said: "Councils are responsible for the management of their own finances and have seen an increase in core spending power of up to £5.1bn or 9.4% in cash terms on 2022/23.

"Section 114 notices are a local matter and the decision to issue one is made by the chief finance officer of the council."

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