Chesterfield council’s budget plan to balance ‘£4m’ shortfall is set for ‘interesting debate’

The Labour-controlled council cabinet approved its budget reports for 2024-25 and its Medium Term Financial Plan at a meeting on February 27 with cost-saving proposals and planned changes to be considered at a Full Council meeting on February 28 by Labour and Liberal Democrat councillors before they can be implemented.

If the financial plans are supported by a majority vote at the Full Council meeting changes to the council’s services and operations can be expected to be implemented from the start of the financial year on April 1 after the authority has blamed high-inflation and interest rates, the impact of Covid-19, the cost of living crisis and uncertain Government funding for its plight.

Council Leader Tricia Gilby said: “We have been extremely prudent with our financial affairs for quite some time now – certainly since 2011 – and that has stood us in good stead and also we have managed to increase the council’s income which we seem to forget.”

Cllr Gilby added: “We are a public-first leader council and have been since 2011 and that has protected us through the pandemic from increased prices and also enabled us to make considerable savings that come back in-house – bigger savings than expected.”

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

It has already agreed to some controversial changes including: 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 currently under consideration include introducing 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.

The council is also proposing its share of the council tax rate be increased by 2.99per cent and it has been agreed that council housing rent should be increased by 7.7per cent all in line with Government expectations and similar rates set by other councils.

It has stated the council tax increase will support and protect services and will mean a Band D property would see an increase of £5.54 – from £185.27 to £190.81, or 10.7p per week – for 2024/25, and a Band A property’s council tax increase will mean an extra £3.69 per year, or 7.1p per week.

In addition, rents follow Government policy advising that they are allowed to increase by the Consumer Price Inflation rate of 6.7per cent plus one per cent leading to the council’s agreed rent increase of 7.7per cent.

Key saving proposal plans, which the cabinet hopes a Full Council vote will support, include 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.

Chesterfield Borough Council has also been able to reduce its workforce costs with 30 full-time employees agreeing to voluntary redundancy or voluntary retirement which will help efforts to avoid compulsory redundancies.

Cllr Gilby said she was saving her voice to give her longest speech of the year at the Full Council meeting on Wednesday evening, February 28, where she added that she was expecting an ‘interesting debate’ during what she summed up as ‘the big day’.

Chesterfield Borough Council also claims that the economic climate has also created general income shortfalls and a disproportionately low business rate income while it faces increasing pay award levels and ICT costs with greater demands such as addressing homelessness.

Opposition Liberal Democrat Group Leader, Cllr Paul Holmes, raised concerns about what will happen to the council if it has to use its reserve funds again and whether its predicted income for 2024-25 will meet expectations.

The council’s chief financial officer Theresa Channell stated the council has assessed reserves extensively and its current reserves are adequate, and the council’s Leisure, Culture and Community Wellbeing Director, Ian Waller, told Mr Holmes the council is confident the figures put forward will progress at expected levels.

Ms Channell said all councils are facing a challenging national economic climate, but there is an expectation Chesterfield Borough Council will be able to deliver services within a balanced budget.

Labour Cllr Gavin Baldauf-Good blamed the lack of Government support for the council’s financial position, and Labour Cllr Jean Innes said the council has been doing a ‘really good job’ to recover the situation, while Labour Cllr Martin Stone said he was confident the council had the means to deal with the national economic uncertainty.

The cabinet approved its budget plans for 2024-25, the use of £214,000 from its Budget Risk Reserve, its proposed council tax increases, and noted its Medium Term Financial Plan for 2025-26 to 2027-28 which will all be presented at the Full Council meeting before any details are finalised.

It also formally noted that final decisions are still to be made concerning its saving proposals.