Some council services in York may have to be stopped completely to fill a £30 million budget black hole in the coming years, a report has warned.

Debbie Mitchell, finance director at City of York Council, told its Executive reviews of services were set to take place to find potential savings with the experience of their users taken into account.

Labour Finance Executive Member Cllr Katie Lomas said while action had been taken to bring the council’s overspend down to £3.4 million, difficult decisions would be required to balance the books.

But Liberal Democrat opposition leader Cllr Nigel Ayre said delays to cuts to Explore York’s libraries contract and other issues meant £1 million of savings had not been made.

Cllr Nigel AyreCllr Nigel Ayre

It comes as the Executive heard on Thursday, September 12 the council’s forecast overspend had been reduced to £3.4 million compared to £11.4 million around the same time last year.

A report on the council’s financial state stated that while the position was much improved, spending could not be maintained at current levels.

It added the overspend would soon exhaust the council’s general reserves of £6.9 million if it is not brought down.

Councillors heard the overspend was in part being driven by rising demand for adult social care and children’s social services and increased complexity in needs.

But the report also warned that delays in cuts of £300,000 to the council’s contract with Explore meant those savings would not be achieved this year.

A further £500,000 is also not set to be saved due to a decision in May to extend the council’s current advertising contract to the end of 2025.

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The council spends around 62 per cent of its budget on adult social care and children’s social services alone and it is legally required to provide those services.

A report on the council’s financial outlook going forward stated a £30 million gap in its budget was forecast for the next three years.

Councillors heard work to analyse the feedback from the Big Budget Conversation which asked residents where they thought savings should come from continues.

The report stated: "It is important that we do not underestimate the scale of the challenge ahead.

“The level of savings required will inevitably require reductions in service levels and may result in some services stopping completely.”

Changes to the capital programme of major projects include moving almost £25.2 million in spending on the York Outer Ring Road scheme into 2027 to 2029.

The Local Democracy Reporting Service (LDRS) has contacted the council for comment on how this and an ongoing milestone review into the scheme will affect the project.

Finance Executive Member Cllr Lomas said she made no apology for taking a careful approach to spending including on the capital programme.

She added there was still work to do to close spending gaps though they were now more modest than the immense £11.4 million overspend of a year ago.

Liberal Democrat Cllr Ayre said the current overspend came after spending in council budgets had grown by around £8 million.

He added there was a risk that if money is spent on projects in later years it could cost the council even more due to inflation in the construction sector.

It comes as local authorities across the country have faced mounting financial pressure, reductions in Government funding and rising costs particularly in adult and children’s services.

It has seen some including Birmingham City Council and Nottingham City Council issue Section 114 notices, effectively declaring bankruptcy.

Cllr Lomas has previously said York council was not immediately at risk of having to do so.