It comes after senior councillors decided to restrict all spending deemed “non-essential”, in an attempt to stave off bankruptcy.

The Labour-run council has blamed inflation, claiming the cost of caring for elderly people, supporting children with special educational needs and providing schools with all of the equipment they need has soared.

The local-authority, which held £634m of debt in March, also said the cost of borrowing has risen sharply over the last year, following a series of interest rate rises.

The council warned it will need to issue a Section 114 notice, effectively declaring itself bankrupt, unless it can find savings.

A new report states the latest projections show the local authority needs to find an extra £47.8m to balance the books by 2024/25.

After spending on services went £27m over budget last year, the council is predicting a £20.3m overspend in the current financial year.

The local authority claimed it will need to use almost all of its reserves to cover its losses, meaning there is “no scope to use reserves” in 2024/25 and “any funding gap must be bridged by reductions in the base budget".

It comes as some staff are considering strike action, after trade union Unison warned the council is planning to make 250 redundancies by March 2024 and 750 overall.

Kirklees Council said it has imposed a recruitment freeze and will now only spend more on meeting its legal obligations to deliver key services, honouring contracts and generating revenue.

There are plans to “accelerate the sale" of various buildings to raise around £12.8m, hike fees and charges, cut administration costs and review its investment plans, to see if any projects can be delayed to save money in the short term.

The council said it will also look to kickstart development in Kirklees, as new homes and businesses will provide additional income.

Councillor Graham Turner, Cabinet Member for Finance, said a plan to shore up the council's finances is due to be discussed at a meeting next week.

“This financial plan shows we’re facing up to the challenge,” he said.

“Growing our economy, making efficiencies and prioritising spending will be key to overcoming the pressures we face and setting the council on a firm financial footing.”

Councillor Cathy Scott has been appointed as acting leader of the council following the resignation of Shabir Pandor, and Steve Mawson became the new chief executive earlier this month.

Local authorities across the country, which are required to set balanced budgets, have been struggling with inflation, soaring energy prices and the rising cost of providing care to vulnerable people.

The Government said their “core spending power”, which includes council tax revenue, increased by £5.1bn in 2023/24.

Kirklees Council: Key talks set to take place as Yorkshire council tries to avoid £50m deficit