Tough decisions ahead for balancing the Council's budget
Published: 30 November 2022
Derby City Council is making every penny stretch as far as it can, to close this year’s forecasted budget gap of £34 million. Without additional Government funding the shortfall has the potential to rise to £48 million by 2025/26. A series of savings are being planned to deliver a balanced budget for 2023/24.
Just as household budgets have been hit by the ‘perfect storm’ of rising inflation and energy costs, councils across the country have also been affected as demand grows for services, particularly for the most vulnerable children and elderly people.
Derby City Council is taking urgent action to mitigate this ‘financial shock’ and will set out an approach for the next three years in its Medium-Term Financial Strategy, which will be going to Council Cabinet on Wednesday 7 December.
The approach involves reducing and redesigning current services and planning for services with less than 90% of current funding.
A subsequent report will be considered by Cabinet on Wednesday 21 December, setting out key proposals for balancing next year’s budget and the position for the following two years.
Councillor Jon Smale, Cabinet Member for Finance, Digital and Culture, said:
We are working incredibly hard to find savings to manage our budgets this year and for the next three years, but like councils all over the country, we’re under intense financial pressure due to economic and demand factors largely beyond our control.
We appreciate the support we’re getting from our partners across the city who understand the situation we face. Our ambition for Derby remains the same, even if we must change the way we go about it.
Derby’s citizens will get a chance to have their say when the proposals go to public consultation just before Christmas.