Mansfield Council plans to raise council tax by maximum amount to plug £228,000 deficit

The authority released its draft three-year financial plan for 2026-29 last week and it was presented to cabinet at a council meeting on November 10.

It shows a deficit for the next financial year of £228,000 in its general budget, used for spending on most services.

Coun Craig Whitby (Lab), portfolio holder for corporate and finance, explained that putting council tax up by the maximum allowed would bring in £190,000 over the year, leaving just £38,000 worth of deficit left to cover.

That is then planned to be met by increases to ‘fees and charges’ for services, such as cemeteries, planning applications, room hire, car parks and allotments.

Coun Whitby said: “Raising council tax is an incredibly difficult decision to make.

"But you’ve got to do the things that secure future funding from Government.

“What we’re facing at the moment is government telling local authorities that if we’re not using every means of income generation at our disposal, that could affect future funding agreements.

“If a council doesn’t put up council tax by the maximum allowed, it could be seen as us not pulling all the levers we can do, so that should be reflected in how much we get.

"This year especially it’s important that we’re seen to be raising the maximum revenue that we can.”

Many of Mansfield’s properties are in bands A and B, which have the lowest rates of council tax.

This means that it’s not as easy to generate money from small council tax rises as it would be in more affluent areas, where a 0.5 per cent increase may suffice due to the higher proportion of properties in higher bands, resulting in residents paying more overall.

Coun Whitby continued: “Council tax is not a very great tool, it’s quite a blunt instrument.

"But it’s the only one we’ve really got at our disposal.”

He added that this year’s deficit, while warranting the council tax rise, is one of the best Mansfield has had in years.

He said: “I’m pleased, it shows that the tough decisions that were made over the last six years have moved things in the right direction.

“Decisions we made two years ago are paying dividends now.

"We’re not having to look at service reductions in terms of making additional savings.”

Last year’s budget deficit was a similar figure of £237,452.

Coun Whitby says that while the full extent of whether that budget gap was closed will not be evident until the end of the current 2025-26 financial year in April, council tax rises and cuts to councillors’ ward allowances from £1000 to £500 have been implemented.

It follows years of deficits in Mansfield that have crossed the million-pound threshold.

Elsewhere, council housing rents are likely to go up by the recommended amount, which is 4.8 per cent.

The draft plan will now be scrutinised by councillors before it’s presented to full council for approval in February.