Council grappling with shortfall of nearly £70m
The leader of Leeds City Council wants “fundamental changes” to how councils are funded, after revealing budget proposals which require £69.8m savings in the next financial year.
Councillor James Lewis made the comments as details of the proposed budget for 2023/24 were published ahead of next week’s executive board meeting on 14 December, where they will be discussed by senior councillors.
Proposals include increasing council tax by 2.99%, with an additional 2% of that earmarked for adult social care costs.
The 2023/24 budget proposals include a reduction of 44.4 full-time equivalent (FTE) council job roles. The council says it is trying to avoid compulsory redundancies through voluntary measures.
Rising energy costs, high levels of inflation and increasing costs and demand for services especially in children’s services and for adult social care, along with a nationally-agreed pay increase for staff have contributed to the shortfall of £69.8m, needing savings by the council to balance its budget next year.
Cllr Lewis, said: “The system of how councils are funded needs a fundamental change as it is simply not realistic or sustainable for councils like ours to keep finding significant savings year on year to deliver a balanced budget while continuing to provide vital services.
Councillor James Lewis
“Government funding for councils is worked out using outdated formulas rather than considering need, across all areas including health funding, housing, council tax, business rates, education and social care.
“The current business rates system is a good example of not being fit for purpose, as Leeds is the only northern core city which has to send tax resources back to the Treasury.
“A Fair Funding Review was announced by the Government back in 2016, and we need an update as to when its findings will be implemented.
“We have seen core Government funding for Leeds reduced by approximately £263m for each year between 2011 and 2023 yet the need for services remains high.”
Of the £69.8m shortfall identified, £11.3m savings have already been agreed by the executive board in October. Further savings proposals being put forward to the December meeting would realise another £42.6m if approved.
Savings proposals being put forward for 2023/24 include reviewing areas of children’s services to contribute to safely reducing the need for children to become looked after and a review of children’s centres.
A review will also be undertaken on the future of some Little Owls nurseries in the city, as the service currently runs at a loss.
Proposals will be put forward for more automation and dimming of streetlights when traffic flows are lower, the introduction of parking charges at some parks and attractions and having no annual council bonfires or fireworks displays.
The council has agreed to work with West Yorkshire Combined Authority and partner authorities to undertake an inflation review to understand the implications of significant cost pressures currently being experienced on transport projects, which could result in some projects being “paused”.
Final budget proposals will be presented to the council’s executive board on 8 February, before being voted on at a full council meeting on 22 February.
