Struggling Chesterfield council is compared to Oliver Twist as it awaits a ‘tiny bit more’ Government funding

The Government’s Communities Secretary, Michael Gove, announced on January 24 that a further £600m of funding is to be made available for struggling councils across England after some Conservative MPs called for more funding following disappointment at Mr Gove’s original £64bn funding announcement in December for the 2024-25 financial year.

But a £500m share of the £600m will be allocated for wider county councils to support adult and children’s social care leaving little for the country’s financially-pressured district and borough councils.

Chesterfield Borough Council’s Deputy Leader, Cllr Amanda Serjeant – who is also the Cabinet Member for Finance and Asset Management – told a January 25 scrutiny committee meeting : “Even with the announcement, yesterday, we get a tiny bit more. A bit like Oliver Twist. It really was not much more from the Government and we are working through what was announced yesterday.

“Coming at such a late stage – it’s unhelpful to get this announcement at such a late stage. It is not how they run their own budgets.”

Cllr Serjeant’s analogy with Victorian author Charles Dickens’ mistreated character Oliver Twist echoed a famous moment in the book by the same name when the starving, poverty-stricken child is reduced to politely asking for more food from workhouse manager Mr Bumble.

The Conservative Government’s decision to provide further funding came in response to a plea from some Tory MPs and a County Councils Network letter – backed by Derbyshire County Council – warning that struggling councils are having to prepare to cut services to balance their budgets and prevent bankruptcy.

Chesterfield Borough Council has produced a Budget Implementation Plan outlining far-reaching cost-saving proposals to address its estimated £4m budget shortfall for the 2024-25 financial year.

And as Derbyshire County Council works to reduce its estimated in-year 2023-24 budget shortfall of £34.1m, it too is working hard to compile tough saving proposals to meet an estimated budget deficit of around £40m for the 2024-25 financial year which begins on April 1.

The county council acknowledged the original funding settlement of £64bn for local authorities represents a 6.5per cent increase but it had hoped for something closer to ten per cent after it claims councils have been facing pressure from under-funding and even with the welcome funding boost the county council leader, Cllr Barry Lewis, also feels this is not enough.

Chesterfield Borough Cllr Serjeant told the scrutiny meeting: “What was announced, yesterday, was mainly announced for the county councils and it’s nowhere near what those Conservative MPs were asking for. It would just about keep their chins above water.

“In terms of district councils – that is us – it looks like a one per cent uplift for us and how that breaks down I would not like to say.

“It brings it to a four per cent uplift to our core spending. But like with everything with this Government we are still waiting, and will it make it in time when we set the budget? Probably not, so we will have to set the budget regardless.”

Both the county council and the borough council have argued local authorities across the country are experiencing similar financial issues beyond their control due to uncertainty over under-funding from Government, high inflation rates, the cost of living crisis, rising costs and demands, and the impact of the Covid-19 pandemic.

Cllr Serjeant said: “We are all aware of the severe financial strain that not only this council is facing but councils up and down the country are facing.”

She added: “We only get one-year of funding still and we never know how much that will be. There are a number of Government types of funding. We have no certainty over this and they could be reviewed at any time.

“We are also facing high inflation and people’s budgets are affected by that and so is the council in terms of delivering services and that is across the board.”

Chesterfield Borough Council has already approved increasing fees at Chesterfield’s town centre car parks by about ten per cent and it is introducing nominal fees to its free Residents Parking Scheme from the start of the financial year.

The borough council is also looking at possibly ceasing or reducing services, considering the use and management of its buildings and parks, how it supports public advice agencies, and greater digitalisation.

Both the borough and county councils have also not ruled out plans for possible redundancies in the future.

Despite both local authorities’ tireless efforts, the Government aims to impose conditions upon councils, including cutting wasteful spending and showing evidence of a ‘productivity plan’ which will both be needed to secure any extra funding.

Cllr Serjeant said: “Even from Mr Gove in Central Government, they say we should be more efficient but we are one of the most efficient organisations in the public sector.

“I think, actually, when they are being realistic, Central Government know that we are being efficient because when they need jobs doing it is us they turn to to deliver.

“The auditors raised no issues and we are well within what they would expect at district council and they were satisfied with our prudence.”

County Cllr Lewis also said the county council has always been a financially stable and well-managed local authority and it continues to be upfront about the unprecedented, huge pressures on its budget.

Cllr Serjeant said: “Whilst some work has been done, there is still more to do. Nobody stands for election and no one wants to be in a position where they are looking at where they can save money because we all want to do the best for our communities.”

She added: “We continue putting our communities first and we are doing everything we can to enable that but it’s really for everyone on this council to show leadership during this financial situation.”

Cllr Serjeant also said: “We do not take any of these decisions lightly. There are no easy choices when it comes to council finances for any council. I think every council is facing extreme adversity when it comes to facing council budgets.”

She added: “We need to be sure as councillors that if we are going to make difficult decisions we need to be sure that we will make the savings proposed so we know we are moving towards that financial stability.”

Cllr Serjeant also said that it falls to the council to make cost-savings to legally balance its budget in a transparent way which is why the council has been involving the public in a ‘Budget Conversation’ survey and consultations.

As part of the Government’s latest funding announcement, Mr Gove also said that the rural services delivery grant would rise by £15m in recognition of the challenges faced by authorities serving dispersed populations such as Derbyshire County Council.