Chesterfield council plans to battle multi-million-pound budget shortfalls while protecting essential services

The council – like many other local authorities – is facing extreme pressures on its budgets due to many factors that it feels are outside its control, creating existing and future serious funding gaps.

Councillor Amanda Serjeant, deputy leader of the council and cabinet member for finance and asset management, said: “The country continues to face some extremely difficult financial challenges, with rising inflation, contract price increases and the significant hike in energy prices, amongst other factors.

“Unfortunately, we’re not immune to the impact of these challenges. The situation is worsened for the council because, due to the cost-of-living crisis, we’re also seeing increased demand for services which help those most in need, and seeing a fall in the income we receive from areas such as car parking, markets and rents from our commercial, retail and industrial units.”

A report to the council’s cabinet meeting on July 18 highlighted how the sustained period of austerity, uncertainties over future Government funding, the budgetary impacts from Covid-19 and a period of exceptionally high inflation are among the factors creating a difficult financial environment.

The report sets out the council’s strategic approach to meeting budget shortfalls which currently stand at £2.5m in 2024/25, rising to £3.4m in 2026/27.

Recovery of income streams to pre-Covid levels has not materialised at expected levels, according to the council, and there has been increased pressure from the cost of living crisis, increasing overall costs, and high inflation as well as Brexit creating a skills gap.

Council income is lower due to reduced rental income from the Pavements Shopping Centre, empty retail units in the town centre, and reduced income from car parks.

Occupancy and income levels are lower at the markets, and there have also been reductions in income from venues, as well as with rental income from industrial and commercial units.

Delays with planning applications have also meant a delayed income and council housing rent income has reduced while council housing supervision and management costs have increased.

The council has stated that it has made significant savings over many years and taken steps to manage demand and deliver services in the most economic, efficient and effective way and it wants to balance the 2024/25 budget and its medium-term financial plan.

It aims to do this by continuing to review service provision to ensure it provides value for money, identifying general efficiencies, increasing income, establishing stronger commercial operating principles, transforming how it delivers services, and by rationalising assets and reviewing reserves.

Cllr Sarjeant added: “In times of crisis, people rely on our services more than ever and despite the pressures we’re facing – which are largely beyond our prediction or control – we are taking robust action to keep the council on a sustainable financial footing and protect essential services as far as we can.

“But we must be clear; these pressures are unlike those experienced in previous financial years, and we will inevitably be faced with some difficult decisions about transforming the way we deliver services and doing some things differently.”