‘Optimistic’ Chesterfield Borough Council continues to manage ‘£4m’ budget deficit – but more saving measures are likely
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Cllr Amanda Serjeant, who is also the Cabinet Member for Finance and Asset Management, has spoken following the Labour-controlled council’s consideration at a Cabinet meeting on October 15 of its latest ‘period 5’ Budget Monitoring Report for 2024/25 and Medium-Term Financial Plan.
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Hide AdThe deputy leader said: “Over the last two years we’ve been open and honest with our communities about the unprecedented financial pressures which councils are facing up and down the country, including here in Chesterfield.
“As people know, we’ve had to take some very difficult decisions – including delivering some services in different ways – to make sure we’re able to continue to protect the services that the most vulnerable people in our communities rely on. I’m pleased to say that we have been able to do this.
“Our implementation of the comprehensive savings plan we put in place last February is progressing well and, alongside robust in-year budgetary management, we are currently on track to achieve a managed underspend this financial year (2024/25).
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Hide Ad“While we are cautiously positive about the outlook for this financial year, we know that further savings measures are likely to be needed to achieve similarly balanced budget positions in future financial years.”
Despite the council still being on track to deliver £2.523m of savings, 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 acknowledged more work will be needed which could mean more ‘saving measures’.
It has also revealed during its latest budget update for the 2024/25 financial year that its council house rental income is currently £300,000 less due to its number of empty and unoccupied properties which it has blamed on the backlog of void properties during the Covid-19 pandemic and due the poor condition of ‘returned properties’ needing repairs but it claims progress is being made in this area.
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Hide AdThe council explained a prudent approach has been taken with the budget and priority has been given to funding existing and emerging service pressures in compiling a plan outlined in February which was supported with £214,000 from the Budget Risk Reserve.
Budget interventions so far 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.
The council has 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.
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Hide AdChesterfield Borough Council has also had to review the future use of community buildings to save hundreds of thousands of pounds as well as its sports centre operations and its outdoor sports and leisure activities by reducing costs at park-based community events along with increasing fees and charges at council leisure centres.
The annual Stand Road Park fireworks display has been scrapped and the East Midlands in Bloom competition is no longer being run by the council.
Other changes have 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, and the reduction of workforce costs with some voluntary redundancies or voluntary retirements to avoid compulsory redundancies.
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Hide AdChesterfield Borough Council says it has been forced to introduce changes to address rising costs and demands on services due to the cost-of-living crisis, the Covid-19 pandemic, inflation rates, pay awards, and uncertainty over Government funding.
The Cabinet 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.
It 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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Hide AdThe council stated the Labour Government’s Autumn Budget on October 30 and the Provisional Local Government Settlement expected in December 2024 should provide greater certainty around funding levels but at this stage it is not possible to fully determine the financial impact on the council’s budget gaps.
Cllr Serjeant added: “The scale of these savings measures will be further defined by the upcoming Autumn Statement and the Provisional Local Government Settlement, which is expected in December 2024.”
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