Kirklees hits financial trouble unless budget can be balanced

The local authority around Huddersfield said that it faces a section 114 notice, meaning that it cannot balance its budget for the next financial year as it attempts to find savings on the £47m hole in its finances.

Several other local authorities are also on the brink of issuing such orders, according to analysis by the Guardian newspaper.

A report by council officers in Kirklees due to be presented to councillors next week warned that the “seriousness of the council’s financial position cannot be understated”.

Councillor Paul Davies, the cabinet member for corporate services at Kirklees Council, said: “Even though inflation has slowed marginally, prices are still increasing at a rate we haven’t seen for decades.

“Alongside additional demand for some of our most vital services and our need to protect our most vulnerable residents given the cost-of-living impact, we need to take action now to balance the budget.”

This year Woking council issued a section 114 notice after its investment strategy left it with a £1.2bn deficit.

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 per cent 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.”

It comes after the leader of Kirklees council stepped down with immediate effect ahead of a no confidence vote in his leadership.

Shabir Pandor announced that he was quitting his role as head of the Labour-run council last month.

Local party sources told The Yorkshire Post that Mr Pandor was facing a no confidence vote among Labour councillors with the majority expected to vote against him, with the national party concerned that recent failures in leadership could impact the party’s performance in upcoming elections.