THE cost of delivering council services will increase by a minimum of £68m in just three years’ time, a stark report has warned.
Set to be discussed by the local authority’s audit and governance committee on Wednesday, the report reveals the cost of delivering this year’s services will exceed the agreed budget by £14m.
Future years’ projections suggest the funding gap will grow to ‘at least’ £23m by 2028/29, leading to a multi-point saving plan to be formed.
According to the council, a ‘culture of financial accountability’ will be embedded and more AI tools will be employed, while a senior management ‘restructure’ has also been mooted.
Senior managers are in the process of considering proposals, according to the report.
It said: “The council continues to face several financial risks with the rising cost and demand for services.
“The cost of delivering council services during 2025/26 is set to exceed agreed budgets by £14m, with the estimated cost over the period through to 2028/29 set to increase by a minimum of £68m.
“Following publication of the Ministry of Housing, Communities and Local Government’s fair funding review, the council is facing a budget gap of at least £23m to 2028/29 on the back of delivering over £150m
in efficiencies since 2010.
“These issues place added pressure on the council’s ongoing financial sustainability.
“Demand and wider cost pressures need to be managed within approved resources, and all agreed efficiency plans need to be delivered.
“The financial position needs to be under constant review with mitigations being implemented quickly to address any variance against the agreed plan.”
The council has had to use substantial reserves totalling £51m to support the budget in the past four fiscal years.
Leaders say it has only been possible because the council accumulated ‘significant reserves’ following a sustained period of successful efficiency and other savings programmes, particularly in the decade following the commencement of austerity in 2010.
However, social care for children and adults have been identified as huge expenses but council bosses admitted it is becoming ‘more difficult’ identify and deliver needed savings.
Councillor William Brown, leader of the council, said his team would look at plans to ensure the council’s financial stability.
He added: “Barnsley Council’s current medium-term financial strategy was approved in February 2026.
“The published papers outlined the budget pressures for the next three years.
“We know that increased demand from children and adult social care is having a significant impact on council finances across the country.
“We’ll be working with officers at the council to understand budget pressures and saving plans to ensure the council remains financially sustainable.”
