Government settlement means smaller financial hole to fill at Mansfield District Council

Mansfield District Council
By Andrew Topping, Local Democracy Reporter

Mansfield District Council has confirmed the amount it needs to find in savings has fallen following a higher-than-expected grant settlement from Whitehall.

The Labour-run authority had previously needed to find £1.894m to balance its books in April.

But now the authority has been told how much money it will get from the Government to support the running of frontline services.

The council will have to find £555,000 less than previously expected, putting the budget black hole at £1.339m for the financial year of  2023/24.

It means a major change to cost-cutting plans has been put forward by the Labour cabinet including less cash being taken from reserves.

It’s proposed the use of corporate reserves will be cut from £473,000 to £305,000, while general fund cash will now be £222,000 rather than £247,000.

Establishment changes will also be reduced from £755,000 to £651,000 in savings, though no specific proposals have yet been confirmed.

And the council will no longer rely on cash from its Wildflower Rise development, off Windmill Lane, with this money which was due to be £250,000 to be pushed into later years.

Plans including £8,000 in service reductions and £142,000 from income generation remain.

It comes as the authority also revealed plans to cut councillors’ special responsibility allowances by 10 per cent.

This is a measure taken by the council most years and will bring a further £16,000 in savings.

But the extra Government income also means the council will put £25,000 into an economic stimulus fund to drive growth in the town.

Cabinet members and scrutiny councillors have already agreed with plans to freeze council tax at the previous year’s level.

In a report, Councillor Craig Whitby (Lab), cabinet member for corporate and finance, said: “The Government has announced its draft financial settlement for local authorities.

“This has resulted in the council receiving additional grants for 2023/24 as part of a one-year settlement.

“The outcome has meant an improved position for the council, which has resulted in a change to my original proposals.”

Members of the council’s overview and scrutiny corporate resources committee will discuss the new proposals on Wednesday, January 4.

Local Government Secretary Michael Gove said this week: “Local government plays an absolutely vital role in helping us to level up, support the most vulnerable, and deliver key services that people rely on every single day.

“We recognise the pressures councils are facing right now and this spending boost will provide the support and funding local authorities need to continue delivering first-rate public services.”

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