Ashfield District Council confirms it has more than £570,000 in reserve to tackle rising energy bills
Ashfield District Council has stated it has £577,000 in reserves to help meet rising energy bills this winter.
However, the authority admits some additional costs ‘cannot be avoided’.
District councils in Nottinghamshire say they expect ‘significant’ rises in their heating and energy costs to hit their finances this winter amid widespread price increases.
But most authorities believe they are prepared for the financial challenges – which are likely to see councils paying tens of thousands of pounds more in gas and electricity bills each year.
Households across the country continue to feel the pinch of soaring bills, with fears millions could be forced into fuel poverty this winter as further rises are projected.
Nottinghamshire councils say they are doing what they can to support residents’ pockets, with authorities ‘acutely aware’ of the financial burdens being faced by their residents.
However, local authorities also face their own budget problems caused by the rising prices.
The Local Government Association (LGA), the body supporting councils across England, has recently raised concerns about the ‘disastrous’ impact rising inflation could have on council services, which would go on to affect residents.
And while many Nottinghamshire authorities say it’s ‘too early’ to project just how bad their soaring bills will be, many are taking action now.But measures have already been taken to address the projected rise in bills, with councils aware of the potential cost of living crisis as long ago as last autumn.
Contingency funds have been set up using reserves and underspends in budgets, with some councils having hundreds of thousands of pounds earmarked specifically for inflationary pressures.
And local authorities have begun investing in energy efficiency measures – including retrofitting buildings and using solar panels to reduce costs – which they say are already reducing some of the financial burdens.
Ashfield says it has taken both these approaches which has helped it build it reserves of more than half a million pounds.
Councils are expecting to publish medium-term financial strategies in the coming months to set out how rising bills will be funded.
However, councils can only work on projections of current energy tariffs when setting budgets – making it likely bills could be higher than budgeted by the time the next financial year begins in April.