By Andrew Topping, Local Democracy Reporter
Raising council tax to plug a £1.9m gap in Mansfield District Council’s finances may be “almost inevitable” due to potential public sector cuts, the district’s mayor has warned.
However, the authority says it is “really mindful” of the pressure households are facing with the cost of living crisis and this option will only be considered if it is “absolutely necessary”.
The Labour-led authority has started the process of setting its budget for 2023/24 and must find £1.894m to balance the books.
As a mayoral authority, it must approve a balanced budget by the end of January – before any other council in Nottinghamshire has accepted its financial plans.
Last week it was revealed inflationary pressures, rising energy costs and an £800,000 forecasted rise in staff wages were to blame for the financial gap.
In the following two financial years, the gaps are forecast to be much higher at £4.12m and £4.7m.
A review of all services will be taken to assess “whether or not the service will continue to be provided”.
And to make up some of the £1.9m gap, £9,000 is expected to be found through ‘cost reduction’, £755,000 could come from ‘establishment savings’ and £142,000 may be provided through ‘income generation’.
A further £18,000 is proposed through ‘service reductions’, though council papers do not confirm any specific policies.
The authority’s cabinet approved the beginning of the budget-setting process on Monday evening (October 31) and now a cross-party scrutiny committee will draw up concrete proposals to plug the hole.
No proposals for council tax increases have yet been revealed, with the authority waiting for the Government to confirm the maximum threshold bills could be risen by.
Last year, lower-tier authorities could raise bills by £5 on a Band D home or 1.99 per cent – whichever was higher – without calling a referendum.
If this remains the same in 2023/24, Mansfield District Council would generate £153,000 from a £5 Band D rise, while a 1.99 per cent increase would provide £118,000 to budgets.
However, speaking after the cabinet meeting, Andy Abrahams (Lab), the district’s executive mayor, said he would rather not have to increase residents’ precepts given the ongoing cash crisis.
“We are looking at a big range of options,” he told the Local Democracy Reporting Service.
“Some are more palatable than others but, through overview and scrutiny, we will go through these options.
“What we’re trying to balance is that we’re right in the middle of a cost of living crisis and I want to help our local residents as much as possible.
“You’ve got to weigh it up against where services might be cut.
“We’re not at that stage right now where I can say for sure, but I’m really mindful that I don’t want to increase the financial burden on our residents through council tax unless it’s absolutely necessary.
“But, in the longer term, it’s inevitable almost because we’ve more or less got a government saying there’s austerity coming again.
“And, unlike the Government, we can’t borrow, and we have to make our books balance on an ever-reducing budget.”
Other councils across Nottinghamshire are facing a similar picture, with authorities in the city and county needing to find tens of millions combined to balance their books next year.
Tory-led Nottinghamshire County Council needs to find £24m alone, with Labour-run Nottingham City Council revealing inflation has added at least £15m to its financial planning.
Ashfield District Council has a £3m gap, while there’s also a £1.36m gap in Bassetlaw, a £2.2m gap in Broxtowe and a £3.6m gap in Newark and Sherwood.
Gedling and Rushcliffe are yet to reveal their financial gaps for next year and are awaiting Chancellor Jeremy Hunt’s autumn statement on November 17.
Mansfield District Council’s overview and scrutiny corporate resources committee begin drawing up cash-saving plans on Tuesday (November 1) with the full plans due before full council on January 24.
