Chesterfield Borough Council claims it is on track to deliver £2.5m savings - thanks to controversial changes including increase in car park charges and closure of Visitor Information Centre

The Labour-led council has explained it has been battling rising costs and demands on services due to the cost-of-living crisis, the Covid-19 pandemic, exceptionally high inflation rates, pay awards, and uncertainty over Government funding as it continues to addresses the estimated budget deficit.

But following a roll-out of some of its cost-saving measures, it recently noted in its Budget Monitoring Report’s forecast out-turn position at a Cabinet meeting, on July 16, that there are currently £2.523m of savings that have either been delivered or are on track to be delivered in full,

A council officer stated in the report: “Like all local authorities, Chesterfield Borough Council continues to face significant financial challenges.

“The sustained period of austerity since 2010, the ongoing risks and uncertainties over future funding arrangements, the budgetary impacts of the Covid-19 pandemic and a sustained period of exceptionally high inflation, have all impacted on the council’s financial position.

“In response to these challenges, the council has already made significant savings over many years and taken steps to manage demand and deliver services in the most economic, efficient, and effective way.”

Changes to the council’s services and operations began to be implemented from the start of the 2024/25 financial year on April 1 after the authority blamed high-inflation and interest rates, the impact of Covid-19, the cost of living crisis and uncertainty over Government funding for its plight.

The council compiled a Budget Strategy and Budget Implementation Plan with what it believes are efficiency transformations, saving proposals and improved commercial, right-sizing principles while using its financial reserves amid efforts to reduce its multi-million pound budget gap while claiming to protect its services and ensuring sustainability.

Controversial changes have included: Fee increases at its town centre car parks; New road-side garden waste collection charges; Increased fees and charges across some public services; The closure of its Visitor Information Centre with plans for a new digitised system; The closure of heritage site Revolution House; And the relocation of its customer services centre to the Town Hall.

Other plans include the introduction of new and increased fees and charges at some of its community venues and sports and leisure centres as well as withdrawing funding for four public advice support agencies.

It has also been addressing a number of other areas including: The future of the council’s tourist information services; How some council community buildings will be used; The level of funding for external organisations and subsidies for outdoor sports and leisure activities; How council venues are managed; The use of digital technology; The council’s events programme; And the management and maintenance of parks and open spaces.

It has also been able to reduce its workforce costs with some full-time employees agreeing to voluntary redundancy or voluntary retirement which will help efforts to avoid compulsory redundancies.

However, Chesterfield Borough Council’s opposition leader Paul Holmes has accused the authority of failing to tackle their overspends for five years after the council announced its saving plans in February.

A council officer added in the latest report: “The council has well-established and robust budget processes.

“These have been followed when compiling the 2024/25 budget and medium-term projections. A prudent approach was taken to the estimates and assumptions used in the preparation of the budgets.”

During the July 16 meeting, the Cabinet formally approved and noted the forecast out-turn position of the General Fund Revenue Account for the financial year 2024/25 and its General Fund Capital Programme expenditure forecast for the financial year 2024/25.

And during the same meeting, the Cabinet also noted and approved details of the General Fund budget out-turn report for the previous 2023/24 financial year with the draft General Fund Revenue, Capital Out-turn and Housing Revenue Account positions.

This report stated the 2023/24 budget was constructed in accordance with the council’s budget principles and the Medium-Term Financial Plan and was balanced with the use of £1m from the Budget Risk Reserve.

It added that In the months after the 2023/24 budget was approved, the national fiscal and economic situation continued to change and a number of in-year spending pressures emerged.

As part of the 2023/24 report, the Cabinet approved the proposed transfer of the General Fund Revenue underspend of £204,000 to its Budget Risk Reserve to mitigate the potential impacts of emerging risks and pressures in 2024/25 and future years.

Also in the 2023/24 report, the council noted rental income from the Pavements Shopping Centre was lower than assumed, there was an overspend on Digital, Customer and Human Resources costs, an underspend on General Fund Housing, and a net overspend on Leisure, Culture and Community Wellbeing.

A council officer stated: “Whilst this report focuses on the 2023/24 out-turn position, the current economic uncertainty, the impact of legacy inflationary pressures and the ever-increasing demands being placed on specific council services will inevitably continue to impact on the council’s forecast spend in 2024/25 and over the term of the Medium Term Financial Plan.”