Mansfield council balances £2.2 million budget deficit

Through cuts to services and spending, the Labour-led council says it will manage to plug a £2.2million gap by the end of the current financial year, which is on March 31, 2025.

An update on the council’s Medium Term Financial Plan for 2025/26 to 2027/28 was published on January 6, ahead of a meeting today (Thursday, January 16).

Cuts made by the council include reduced opening hours at Mansfield Museum, savings in promotional activities and a decrease in grants and support to business and third sector.

Council documents read: “The council [is] having to make difficult decisions in terms of the services it provides in order to balance the budget and maintain a sustainable financial position.”

However, the authority is also using more than £220,000 from its reserves to balance its budget for this year.

Documents reveal the council had to dip into £221,000 of the Corporate Priorities Reserve in 2024/2025 to balance the budget.

However, the council has warned the continued use of reserves may pose a “risk ” to its financial position.

Documents say: “The reserves have been depleted over a number of years and the use of further reserves may pose a risk to the sustainability of the council in the future. The Cabinet has been advised of the risk all the above poses to the council.”

All councils have to set a balanced budget by law each year. If they fail to do so, they can issue a Section 114 notice – meaning they can’t commit to any new spending and are effectively bankrupt.

Nottingham City Council issued this notice in November 2023, although there is no suggestion currently that Mansfield District Council is close to doing so.

Mansfield Council reports on its financial plan say officers have warned the use of reserves should be “avoided at all costs” as it only creates a “bigger problem in future years” and “doesn’t address the underlying base budget requirement”.

This means the reserves will need to be reimbursed at the “earliest opportunity”.

Mansfield District Council said: “In the current year, 2024/2025, we have no deficit. A balanced budget.

“The figures for 2025/2026 are currently being finalised ahead of the budget being presented to Full Council in February.”

The council’s overview and scrutiny committee will meet on Thursday (January 16) to discuss the figures further ahead of the February full council meeting.