Chesterfield Borough Council has set out plans to address significant financial pressures, as it works to protect essential services and meet increasing demand to help the most vulnerable.
Like local authorities up and down the country, the council is facing extreme pressures on its budgets due to a range of factors outside of its control – with significant and serious funding gaps now and in future years.
A report to the council’s Cabinet meeting on 18 July highlights how the sustained period of austerity, ongoing risks and uncertainties over future Government funding, the budgetary impacts from Covid-19 and a period of exceptionally high inflation are amongst 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.
The strategy was approved by Cabinet and will be considered at a meeting of Full Council on Wednesday 19 July for final sign off.
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.
“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. But we remain committed to taking a prudent, responsible and sustainable approach to delivering value for money services.”
The council will continue to review service provision to ensure it provides value for money, as well as looking at efficiencies, assets and income, to support a balanced budget and medium-term financial plan.
