Calderdale Council budget overspend 'likely to worsen' despite cuts
The local authority is under pressure due to the ballooning cost of care
Last updated 28th Oct 2025
A council is set to overspend its annual budget by an amount double than previously predicted, senior councillors are warned.
The reasons why higher-than-expected costs are threatening Calderdale Council will have to use more of its limited cash reserves to balance the books by next spring are the same, but the amount is predicted to be higher.
Three months ago, council Cabinet members heard the authority was set to break budget by £2.7 million by the end of the year but the latest monitoring report predicts this will be more like double that – a £5.4 million overspend.
In 2025-26 the council’s agreed budget for revenue – day-to-day – spending for the year was £249.8 million.
This is despite measures being undertaken to make savings showing some success and extra amounts which were budgeted for the some areas, particularly social care.
Of around £6 million of savings sought this year, £5.86 million are described as “being achieved in full or are in-delivery” with £400,000 worth described as “off-track”.
But the cost of care packages – which local authorities legally have to provide – is still outstripping the contingency amounts which were put in the budget.
Cabinet councillors will consider the report when they meet on Monday, November 3.
Social care packages, for children as well as adults, meeting some children’s special educational needs, costs needed to deal with homelessness and reactive repairs to Calderdale’s roads are described as the most significant areas of budget risk.
In adults services main aspects of the estimated £4.15 million overspend are the cost of learning disabilities and neurodiversity care packages, which have doubled compared to the previous three-month period.
Special educational needs costs continue to impact both children’s services and public services directorates.
Public services also shows a £2.1 million overspend on refuse collection, largely the result of extending operator Suez’s contract for an extra year until summer 2026 while transition to a new joint partnership between the council and the Norse Group to replace it is funded and developed.
Around £200,000 of that figure is due to a change in regulations and the cost of disposing of waste has gone up by more than inflation, councillors are told.
Where possible a preventative approach to problems is advised and councillors are warned the ongoing search for savings has to continue to avoid using up limited reserves.
Budget challenge meetings continue to be held regularly with service directors to try and manage areas of concern.
Use of more expensive agency staff to fill service gaps is reducing compared to recent years as a result, Cabinet is told.
The councillors will also be asked to approve the changing capital spending budget and agree to use around £600,000 of £1 million worth of funds unallocated – this money will be used for some critical safety surfacing improvements for some playgrounds (£100,000), upgrading Halifax Borough Market stalls (£250,000) and work on a culvert at Todmorden (£250,000).
The capital budget, used for infrastructure projects, is expected to £368.1 million from 2025-26 to 2028-29, of which around 68 per cent is expected to come from grants, 28 per cent borrowed – around £104.7 million – and three per cent coming from existing reserves.