Kirklees Council Cabinet members have agreed to a four year budget strategy to tackle reduced funding settlements up to 2020.
To qualify for the four year plan, they must now submit an efficiency plan to the government, identifying how they will achieve planned savings.
Funding has been cut nationally to local government by 40% since 2010, and it is expected to be cut by a further 32% over the next four years.
Council leader David Sheard said: “In effect we have had our budget halved over the last six years, and yet we are expecting even deeper cuts to our budget over the lifetime of this plan. This is at the same time as demand for our services is increasing, we face inflation pressures, and there has been a rise in the costs of waste, children & adult social care provision.
“Kirklees is the 8th worst funded council in the country in funding per head of population – we are the second worst funded metropolitan council. Without serious action, our budget gap by 2021 would be £65 million and most of our available reserves used up.”
Kirklees has agreed an approach to a new council which fundamentally changes the relationship between the council and residents and businesses.
But Cabinet members heard that as a result of baseline funding changes and spending changes, the forecast gaps in the budget will be £28 million next year, increasing to £41 million in 2018/19, £51 million in 2019/2020, and £65 million in 2020/2021.
Council officers are now working on a range of proposals for councillors to consider to reduce the funding gap, and will work with members of the council throughout the process.
The efficiency plan also includes identified savings which can be further developed and considered by councillors.
Budget consultation with members of the public will take place in October and November, but for some proposals, there will have to be an individual formal consultation process.
Cllr Sheard said: “We cannot rely on reserves to balance budgets, we need to significantly change our spending patterns. There are things we can do around our own costs, but achieving these kinds of savings will mean doing things very differently in the future.”
The Medium Term Financial Plan and efficiency statement will now go to full council on Wednesday 12 October.