‘We are not going bust’: Wakefield Council leader gives assurance over finances

Densie Jeffery referred to the financial crisis facing Birmingham City Council as she made the comments.

Labour-controlled Birmingham last week declared itself effectively bankrupt by issuing a section 114 notice to signal that it does not have the resources to balance its budget.

In August, Wakefield’s neighbour Kirklees Council announced a freeze on all essential spending to avoid a similar fate as it looks to make savings of £47.8m.

Coun Jeffery told a cabinet meeting: “We are getting lots of comments from the public asking if we are about to go bust like other areas – well we are not.

“We are doing all we can.

“We are a well-managed council and we have been very careful how we do things.

“We are delivering regeneration and investment across this district for the people that we represent.

“We are very prudent with the public purse.

“We will make sure that we deliver for the people without being in a terrible financial situation.

“It is a tough time for people in other areas but we are not in that situation.”

Coun Jeffery made the comments as the cabinet approved a financial report which predicts the Labour-run council’s budget overspend to be lower than forecast at the start of the financial year.

The predicted overspend for 2023/24 is now £1.4m, compared to a £4.9m six months ago.

Coun Jeffery added: “This is a positive given that cabinet colleagues will be aware that the current economic climate continues to have significant impact on the council and all local authorities, particularly those close to home.

“You have all seen about Birmingham and what is happening there.

“Times are tough in local government.

“I’m not saying it’s not tough for us.

“But we are not in a financial situation compared to others and we are working to make sure we deliver balanced budgets and we are not in a financially difficult situation.”

In March, council tax in Wakefield was increased by the highest permitted amount as part of efforts to plug a funding gap of £24.7m during 2023/24.

The budget saw free parking at council-run car parks being scrapped,

The council also announced its intention to use £10m of its reserves to help ease pressure on services and residents.

The meeting, on Tuesday (September 12), was held at Production Park, in South Kirkby, instead of Wakefield Town Hall, in a bid to showcase other areas of the district.Production Park is a world leader in providing rehearsal and filming space for some of the world’s biggest stars including Lady Gaga, Beyoncé, Arctic Monkeys and the Rolling Stones.

Deputy leader Jack Hemingway told the meeting: “There has been massive austerity from central government in recent years which is continuing to impact on local authorities.

“It is quite incredible that local authorities are staying afloat, managing their budgets and investing in their communities.

“Let’s not forget monies are still being cut from this authority.

“If it wasn’t for prudent use of reserves and efficiency measures we would be having to cut front-line services.”

Michael Graham, cabinet member for regeneration and economic growth, said: “We know that this has been happening at councils no matter who is in control, whether it’s Conservative or Labour.

“I really wish people would put the blame where it should be – at the feet of the government – because they are making it impossible.

“Birmingham was a very well-run council.

“The leader and deputy there did a fantastic job.

“But there is only so much local authorities can take and they won’t be the last to go under.

“We will see more across the country.

“It is about time they gave us a proper settlement and not have us living hand to mouth, year on year.”