Derbyshire County Council has approved cost control measures to help it plug a £46 million budget gap. The council is the latest to find itself in significant financial hardship following years of austerity imposed on local government by Westminster, along with high inflation, high demand for services and the nationally set pay award.
Council leaders in Derbyshire announced that measures would be needed earlier this month to reduce its spending after previously using millions of pounds of its reserves to balance its books.
The new measures include postponing new projects and delaying new contracts, reducing overtime and freezing recruitment.
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They were approved at a meeting of the council’s cabinet on Thursday, but the council’s leader, Councillor Barry Lewis, said the authority was “far from” bankruptcy.
He said: “We are taking immediate action to control our spending.
“This is not a bankruptcy situation for this council, far from it. However, to be completely clear with our residents, employees and partners, this is a difficult situation and we must rise to the challenge.
“We have always been a well-managed, efficient and financially stable council which has balanced our books, maintained a robust level of reserves and been able to support vital, high quality, value-for-money services for our residents across Derbyshire.
“However, the reality is that the financial pressures we are facing, along with other councils and households, are now greater than ever experienced before, with most of these pressures being simply outside our control.
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“The decision taken today by cabinet is the first step on our journey to get our finances back on the right track.
“Our employees are now tasked with looking at every penny they spend, to make sure it is essential and value for money.”
Other measures taken by the council include stopping “non-essential” conferences, travel and training, only conducting repairs on council properties if they are needed for health and safety reasons and reducing the amount spent on equipment.
It is expected that the measures will reduce the forecasted overspend, which came despite a total of almost £85m of council reserves being used to balance its budget in the current and last financial years.
The council said: “Across the country, many councils are experiencing similar issues, many of which are much more severe than at Derbyshire.
“Derbyshire’s proposed approach is to take early action, show prudent financial management, and to contain these external pressures and avoid more serious future consequences.”
The council has previously announced that could sell off its County Hall building, in Matlock, which could be converted into a hotel, residential space, offices or community facilities.
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It has also previously announced plans to close 10 of its Chesterfield area offices, and has been looking at cutting opening hours and bringing in potential charges at its household waste tips.
Opposition Labour leader Joan Dixon has said that 13 years of local Government funding cuts by the Conservatives and financial mismanagement by the leading county council group were to blame for the council’s plight.
County council Lib Dem leader Ed Fordham said the Government had starved councils of investment and that the poor handling of the economy and inflation were to blame for the situation the county council has found itself in.