More than £50m returned to councils as cuts and inflation take their toll

The Mayor of West Yorkshire has joined forces with the region’s five district council leaders to return £51m to local authority budgets.

It comes as councils across the country issue stark warnings about the state of local government finances.

Town halls face serious financial challenges posed by high inflation, rising costs and increased demand for children’s and adult social care, following the pandemic and over a decade of funding cuts from central government.

Cash being returned to councils comes from The West Yorkshire Plus Transport Fund reserve, which funds long-term infrastructure projects in the region.

The £51m funding was agreed at a meeting of West Yorkshire Combined Authority.

Tracy Brabin, West Yorkshire Mayor, said: “Councils across West Yorkshire and beyond are facing the perfect storm of Government austerity cuts and high inflation. Because of devolution, I’ve been able to work with them to identify this support at a time of need.

“With town halls across the country declaring huge financial deficits, it is only right that regional leaders work together and step in where they can.

“But I’m urging the Government to stop passing the buck for their mismanagement of the economy and properly fund local government for the long-term.”

The breakdown of funding is as follows:

Councillor Susan Hinchcliffe, leader of Bradford Council, said: “While this return of funding is appreciated, it in no way makes up for the £350m in funding for Bradford that has been cut by central government.

“Many local authorities nationally are facing significant financial challenges. Government needs to change its approach to ensure councils can continue to meet increasing demand for services amid high inflation and energy costs.”

Cllr Jane Scullion, leader of Calderdale Council, said: “We welcome this repayment which will help us to deal with the immediate financial challenge we are facing.

“Like all councils, we have significant ongoing pressures. The £110m of budget savings we’ve had to find over the past decade impacts on what we do every day.”

Cllr Cathy Scott, leader of Kirklees Council, said: “Councils in our region, and across the country, are facing major financial challenges. Releasing this funding back to councils is a positive step to reduce some of the immediate pressures.

“But many tough decisions remain for all local authorities and we urgently need wider Government reform of the funding system to protect services for the long-term.”

Cllr James Lewis, leader of Leeds City Council, said: “We’re facing huge financial pressures made worse by national issues linked to inflation and growing demand for council services.

“The funding from the mayor will help in part, but it won’t solve the underlying problem that councils just aren’t properly funded by national Government.”

Cllr Denise Jeffery, leader of Wakefield Council, added: “This decision is a great example of political leaders across West Yorkshire working together in difficult circumstances.

“It comes in response to the unprecedented challenge local government is facing caused by the Government’s irresponsible approach to our economy.”