MORE cash has been released by ruling councillors for the third year in a row after it was revealed that Barnsley Council’s annual budget had surpassed its limit by more than £4m.

Cabinet members met on Wednesday to address the situation, which required an extra £4.2m - on top of the annual cap off £256.6m - to balance the ‘year-end cost pressures’.

The higher-than-budgeted sum predominantly comes from the children’s services directorate due to ‘costly’ residential and foster agency placements.

Additional health and safety measures brought in for waste collection teams and an increase in cost for home-to-school transport services were also reported, as was a £500,000 ‘laptop refresh’ programme.

It’s the third year in succession that the local authority’s required extra cash to deliver pre-planned services.

“Given that the council has reported cost pressures over and above the agreed budget for the past three years - circa £30m cumulatively - it is imperative that services now manage any future pressures within their revised 2025/26 budget allocations to prevent the need for more difficult savings being required in future,” a report compiled by finance director Neil Copley said.

“Furthermore, there are a number of fundamental government-led reviews taking place during 2025/26, namely reforms to the welfare system, children and adult social care, SEND and devolution which will impact the council’s future financial position.

“Consequently the 2025/26 budget update also approved that a full mid-year budget review be undertaken by the council’s senior management team to ensure the council has mitigation plans in place to remain financially sustainable.”

A debt write-off of £994,000 was also approved, predominantly owing to historic council tax and rent arrears.

However, council tax collection was strong with 96.47 per cent, with business rates surpassing 97 per cent.

“The council’s major sources of discretionary income are business rates and council tax,” Mr Copley’s report added.

“As government funding remains uncertain, the council’s financial health becomes almost completely reliant upon the collection of both.

“The year-end position for collections represent a strong position given the challenges experienced.

“The position will be closely monitored throughout the next financial year, to ensure any impact is mitigated and managed as appropriate.

“Any increase next year will generate an additional £0.1m for every 0.1 per cent improvement in collection.”

When the annual budget was set in February, the council said it anticipated expenditure on day-to-day services would increase by more than £30m on the previous year’s amount.

Council tax was subsequently hiked by 4.9 per cent.

Sir Steve Houghton, leader of Barnsley Council, said: “Additional services pressures have put significant demands on the council’s finances.

“However, we have plans in place to deal with these through increased efficiencies and the use of reserves.

“Unlike other councils that are struggling to meet these demands, Barnsley’s overall financial position remains sound.

“Our focus in Barnsley is to deliver excellent services while investing in the borough.

“We do this because we want the town and its communities to thrive.”