Call for council tax rise in Mansfield to help authority combat future financial problems

During the 12 months to March 2023, the authority was hit with soaring energy costs which set budgets back by hundreds of thousands of pounds, including a £294,000 shortfall for gas and electricity and £148,000 for fuel costs. It also had to fund a £1,925 national pay award for all staff members, hitting budgets by £1.1 million.

It meant the authority at first thought it may have to increase council tax from April this year to fund an initially forecast £1.9m gap in its finances.

However, a higher-than-expected Government grant settlement meant the council had more money for this year and the tax rise was shelved.

This became the tenth year in 12 where the council had frozen its portion of residents’ bills, but now the authority is to ask residents for their priorities amid an expected £4.5m funding gap over the next four financial years.

It says households will be asked to rank their priorities for services as it looks to make cuts and savings and balance its budgets until 2027.

It comes at a time when financial papers show the authority’s general spending reserves are just £25,000 above minimum levels, sparking concerns from the opposition.

Coun Nigel Moxon, Conservative member for Ling Forest, said: “People will be worried about what’s happened at Birmingham Council, where it has declared a bankruptcy notice.

“We don’t want to get anywhere near that sort of situation here, but with our reserves going down to such a low level, we do need to ensure we keep a restraint on spending going forward and we need to consider council tax increases, quite frankly, to make up for the fact we’ve not had them in 10 of the last 12 years.”

If the authority were to increase its portion of tax by £5 for Band D homes – working out at £3.33 for Band A properties – this would generate £153,000.

The district council’s portion of council tax precepts accounts for about 10 per cent of all sums collected.

About 15 per cent of taxes fund the fire and police emergency services, with the remaining 75 per cent paid to Conservative-controlled Nottinghamshire Council, which raised its precept 4.84 per cent for 2023/24.

Responding to Coun Moxon, Coun Whitby, deputy mayor and portfolio holder for finance, said: “It is concerning we’re at the minimum level for reserves, but our minimum level is still £2.125m.

“This reserve isn’t a rainy day fund – anything above this may be, though not that low level of reserve – but it’s there should we need it for any emergencies.

“It’s worth noting that, by not putting council tax up by small amounts every year, we’re now short of more than £8m at this authority. That would be more than enough to bail us out of any difficulties lying ahead.

“I take on board what Coun Moxon says. It’s a shame it wasn’t put up by small amounts every year as we face this situation now.”