Leeds Council to address unexpected £20.4m rising costs budget shortfall

Leeds City Council are implementing freezes on recruitment and non-essential spending to combat budget pressures of over £20m caused by unexcepted rising national costs.

An updated report on the council’s financial position outlines how significant rises in inflation and energy costs, which have triggered a global cost-of-living crisis, have impacted on Leeds Councils in-year budget position.

As a response to the shortfall, the cities council is freezing recruitment including agency staff and overtime, as well as non-essential spend, except where this is necessary for health and safety or statutory reasons.

The council has already stated that it’s decision to cancel six Bonfire Night events and the annual German Christmas Market were brought about by budget pressures.

Areas of the council have been asked to identify areas for potential additional savings and when these are taken into account, the deficit reduces to £17.98m remaining to be found this financial year.

Leeds Council was already working to realise savings for the year of £16.3m, with a further shortfall expected in the 2023/2024 budget.

Debra Coupar, Deputy Leader of Leeds City Council and Executive member for resources Councillor said: ‘We all know the cost-of-living crisis is now dominating the national news with people getting really worried about how they are going to pay their bills and make ends meet.

‘The council is committed to doing everything we can working with our partners to help people as much as possible, but the rising costs are also causing a further significant impact on council services and has resulted in this additional budget shortfall we weren’t expecting.

‘We have taken immediate action to start addressing this and we are looking at all options to try and find a solution, but the position is really challenging and there is no easy answer.’

The updated report on the councils financial position will be considered by senior councillors on the executive board at it’s meeting in Civic Hall on October 19. 

Photo by Illiya Vjestica