Agenda item

The Service Director – Corporate presented a report outlining the current budget challenge faced by the Council and the budget strategy implementation plan. This enabled members to explore the emerging themes from the budget conversation and be updated on specific consultation activity relating to the remit of the Scrutiny Select Committee – Economic Growth & Communities.

It was reported that like all authorities, Chesterfield Borough Council continues to face significant financial challenges. The sustained period of austerity since 2010, the ongoing risks and uncertainties over future funding arrangements, the budgetary impacts of the Covid-19 pandemic, the cost-of-living crisis, and a sustained period of exceptionally high inflation, have all impacted the Council’s financial decision.

Longer-term reform of local government funding has been delayed until the next Parliament and a structural solution is needed to meet the many statutory duties and demands placed on local authorities. Local authorities continue to lobby strongly for a long term sustainable financial settlement, but it is becoming less likely that this will occur in the short term.

Recent analysis by the Local Government Association (LGA) reveals that Councils in England face a funding gap of £4 billion over the next two years. This is a £1 billion increase since the LGA’s initial analysis in July 2023 as cost and demand pressures continue to rise.

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. It is against this context that the Council developed its approach to balancing the 2024/25 budget and to achieving the same over the period of the mid-term financial plan.

Following the Budget Strategy’s approval by Council in July 2023, a detailed approach to addressing the £2.5m budget gap was developed and approved by Cabinet in November 2023. The implementation plan was developed in line with the thematic interventions set out in the Budget Strategy:

•        Identifying General Efficiencies

•        Increasing Income and Establishing Stronger Commercial Operating Principles

•        Transforming how we Deliver Services

•        Reducing Service Offers/ Stop Doing

•        Statutory and Non-Statutory Services

•        Rightsizing the Organisation

•        Asset Rationalisation and Effective Asset Management

Stage 1 of the plan included largely officer operational decisions or decisions delegated to portfolio holders. Stage 2 proposals are ones which require further development, shown in Appendix 1 of the report.

The Council launched a general budget conversation to assist the Council to deliver on the budget implementation plan themes. The budget conversation ran from 17.11.23 to 15.12.23 and was available to complete either via the Council website or in a hard copy. The Derbyshire Times also ran articles highlighting the opportunity to take part.

The first theme was ‘Identifying General Efficiencies’. Answers received from respondents concentrated on CBC staffing and structures i.e. pay and vacant posts, the digitalisation and transformation of services, alternative delivery plans and asset management.

In the second theme of ‘Increasing income Establishing Stronger Commercial Operating Principles’, 45% agreed, 37% disagreed and 18% were undecided.

In the theme of ‘Transforming how we deliver services’, 53% agreed with enhanced transformation and digitalisation of services.

In the theme of ‘Reducing Service Offer/ Stop Providing’, 44% of respondents disagreed, 33% agreed and 23% were undecided.

51% of respondents were in favour of ‘Rightsizing the Organisation’, with 29% against and 20% undecided. There was concern however from respondents over the quality of services if sizes are reduced, and for the wellbeing of staff.

There was agreement of 60% for ‘Asset Rationalisation and Effective Asset management’, with 20% in disagreement and 20% undecided.

There was concern from members around there only being 154 responses to the budget conversation so whether the responses could really be representative of what the residents of the borough were thinking. The Service Director - Corporate explained that this was a budget conversation to consider key themes and ideas rather than a representative consultation regarding specific proposals. It was reported that the same promotional tools were used to advertise specific consultations (i.e. garden waste) and these had received over 1400 responses.

Members expressed concerns over digital exclusion and equalities issues, especially for sometimes already marginalised groups.

The events programme was discussed, in particular the potential cancellation of the fireworks display at Stand Road Park. It was reported that this was a suggestion that had arisen on multiple responses to the budget conversation. Throughout the budget conversations the health and wellbeing of residents was considered to be extremely important, and the Council must be mindful of this.

It was felt by Members to be important to use the responses gained from the budget conversation as a starter, and to continue looking at the ongoing budgetary plans throughout the year.

RESOLVED –

That the report be noted.