A Nottinghamshire council says it is struggling to cope with "unsustainable" rises in its energy bills as it tries to find savings of nearly £2million. Rising costs of gas and electric have been affecting households up and down the country, but local authorities are also feeling the impact.
Mansfield District Council has now revealed a budget deficit of £1,894,000, partly due to the increases in its utility bills. The council says its annual electricity budget has risen by £332,000 while its annual gas budget has risen by £254,000.
Councillors will soon be reviewing the council's proposed budget for the 2023/24 financial year, which starts next April. The budget sets out how savings will be made, including savings of £18,000 through "service reductions".
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As part of this, a review of all services provided by Mansfield District Council will take place to decide what level of service it can continue to provide in some areas. The council is also proposing "establishment savings" of £755,000.
Councillor Craig Whitby, the portfolio holder for corporate and finance at the district council, said: "With the ever-increasing rise of interest and energy costs, we are finding key utilities such as our annual electricity budget has increased by £332,000 compared to previous estimates, and the annual gas budget has increased by £254,000. These levels of increase are just not sustainable without clear and decisive action.
"Unfortunately, there is no planned increase in grant funding in either 2023/24 or 2024/25 from Government. The allowance in the latest Spending Review... will be insufficient to meet the cost of inflation over the three years, meaning that we have to find alternative savings to fund inflationary pressures."
The budget report will be discussed at a meeting of the district council's overview and scrutiny committee next Tuesday (November 1). It will then be presented to the full council in January, where the budget and latest council tax bands will be voted on.
Cllr Whitby added: "When setting a new budget, we are always mindful of the potential impact it could have on our residents. There will be an ongoing challenges in future years as public sector funding becomes tighter, so the council needs to be prepared to make decisions regarding the level at which services are provided and how they are provided to maintain balanced and sustainable budgets for the future."
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