Chesterfield Borough Council says more work is needed to manage estimated £4m budget deficit
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The Labour-controlled council considered at a Cabinet meeting on October 15 its latest ‘period 5’ Budget Monitoring Report for 2024/25 concerning its forecast out-turn position for its General Fund Revenue Account, General Fund Capital Programme, Housing Revenue Account and HRA Capital Programme, up to August 31, as well as its Medium-Term Financial Plan Update.
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Hide AdDespite the council identifying £2.523m of savings that have either been delivered or are on track to be delivered for the 2024/25 financial year, it has also identified £178,000 of savings that will potentially not be delivered and a further £378,000 of savings that are at risk of not being delivered so it has recognised more work will be needed.
A council spokesperson stated: “Currently there are £2.523m of savings that have either been delivered or are on track to be delivered in full.
“There are £178,000 of savings that will potentially not be delivered in 2024/25 and the impact of these has been built into the period 5 forecast as pressures.
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Hide Ad“There are a further £378,000 of savings that are at risk of not being delivered and there is therefore further work required to enable these to be achieved.”
The council explained a prudent approach has been taken to the estimates and assumptions used in the preparation of the budgets and priority has been given to funding existing and emerging service pressures in compiling its budget plan which was outlined in February and was bolstered with £214,000 from the Budget Risk Reserve.
Budget interventions set out in its strategy have included: Identifying general efficiencies; Increasing income and establishing stronger commercial operating principles; Transforming how it delivers services; Reducing service offers or stop services when considering statutory and non-statutory requirements; Rightsizing the organisation; Asset Rationalisation and effective asset management.
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Hide AdThe council has already closed the Visitor Information Centre, introduced the temporary closure of heritage site Revolution House, brought in cutbacks and changes at the Winding Wheel Theatre, increased car parking fees and introduced new operational arrangements at community hubs including The Assembly Rooms and Hasland Village Hall to reduce losses and improve income.
Chesterfield Borough Council has also had to review the future use of key community buildings to save hundreds of thousands of pounds as well as its sports centre operations and its outdoor sports and leisure activities while considering changed fees and charges at council leisure centres.
It has also had to review how Staveley’s Healthy Living Centre and Chesterfield’s Queen’s Park Sports Centre are managed to ensure commercial opportunities and income are maximised.
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Hide AdBy reviewing and reducing costs of park-based community events and activities such as the annual Stand Road Park fireworks display, the successful East Midlands in Bloom competition – which is no longer being run by the council – and other park activities, a report stated the council could save an estimated £50,000 to £100,000.
Other changes have so far included new road-side garden waste collection charges, increased fees and charges across some public services, and the relocation of its customer services centre to the Town Hall.
Plans have also included 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.
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Hide AdIt 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.
The council has repeatedly explained it has been forced to introduce changes to help battle rising costs and demands on important 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 address the estimated budget deficit.
A council spokesperson stated: “Like all local authorities, Chesterfield Borough Council continues to face significant financial challenges.
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Hide Ad“The cumulative impact of reduced Government funding 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.”
Its financial position has been calculated after considering staffing costs, economic growth, Digital, Customer and Human Resources, Housing, Leisure, Culture and Community Wellbeing, Town Centre Operations, and Terms and Conditions of Employment.
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Hide AdOther areas expected to affect the budget out-turn include consideration of the Pay Award for staff, financial support for the Careline service for the elderly, holding earmarked and un-earmarked reserves to help mitigate against future financial risks, the Housing Revenue Account, and the previous net slippage in the General Fund Capital Programme from 2023/24 into 2024/25.
A council spokesperson added: “The Council’s General Fund Capital Programme faces significant inflationary pressures as the result of a range of factors – not least the impact of last year’s cost-of-living crisis on supply chains, increased labour costs and energy price pressures affecting the availability and cost of key construction materials such as steel, cement and bricks which require high energy use for their production.”
The council has stated that the Medium Term Financial Plan remains challenging and it will have to make difficult decisions to ensure the long-term viability and robustness of the Housing Revenue Account, including reviewing the efficiency of services but also how investment is prioritised.
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Hide AdA council spokesperson added: “There are a number of key factors that will influence and shape the next phase of the budget process.
“The Provisional Local Government Settlement expected in December 2024 should provide greater certainty around funding levels. At this stage it is not possible to fully determine the financial impact on the council’s budget gaps.”
The Cabinet formally noted the forecast out-turn position of the General Fund Revenue Account and agreed to support the strategy for achieving a managed underspend General Fund Revenue Account budget out-turn position for the financial year 2024/25.
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Hide AdIt also noted the General Fund Capital Programme expenditure forecasts and the position of the Housing Revenue Account, Revenue and Capital budgets and the emerging Medium-Term Financial Plan forecast positions for both the General Fund Revenue Account and the Housing Revenue Account for the period 2025/26 to 2028/29.
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