Calderdale Council is working to address a projected overspend of £5.4 million by the conclusion of the 2026-27 financial year, with elected members reporting improved financial management compared to previous periods.
Cabinet member for Corporate Services, Assets and Resources, Councillor Mike Payne, confirmed the projected out-turn represents an improvement on the overspend recorded at the end of the previous council year.
He indicated that efforts to address the financial situation would persist across the authority.
The administration identified pressures on statutory services as a persistent challenge.
Costs associated with adult and children’s social care provision continue to strain council finances, an issue that affected previous Labour-led administrations and now presents difficulties for the Reform UK administration that secured control following May’s local elections.
Councillor Payne noted the projected deficit represents a reduction from the approximately £8 million shortfall inherited by the incoming administration.
He stated that the council had taken encouraging steps and acted promptly to address financial oversight, scrutinise expenditure and implement recovery measures.
Progress achieved over four months includes reductions in borrowing, enhanced financial governance and preservation of essential front line services.
The cabinet member expressed confidence that measures implemented across key areas would restore financial equilibrium while establishing sustainable fiscal conditions.
Council Leader Councillor Dan Sutherland emphasised the importance of achieving value for money.
He indicated cabinet’s commitment to reducing the overspend and acknowledged meaningful progress within a compressed timeframe, while recognising considerable work remains.
Strategic approaches would feature in the 2027-28 budgetary deliberations.
Financial projections indicate the Adults and Well-being directorate will record a £4.6 million overspend, while Children and Young People’s Services faces a £1 million shortfall against budget.
Some imbalance is counterbalanced by centrally managed council expenditure, which is anticipated to underspend by £500,000.
Documentation presented to the new administration reveals savings targets have largely been achieved, though increased demand for social care packages continues to exceed available resources.
Elected members previously received similar financial reporting during two years of Labour-led cabinet stewardship.
Reserve funds have assisted with previous deficits, though reliance on such balances becomes increasingly constrained as each fiscal period concludes.