Hucknall residents could face another council tax rise as authorities try to balance the books

For Hucknall and Bulwell residents, council tax increases, the use of reserves and potential cuts or changes to services are on the horizon for some authorities as they try to claw back cash.

The current 10.1 per cent inflation rate is causing budgets to soar above levels previously forecast in February and March this year – when financial papers were first approved.

Some district and borough authorities need to find gaps exceeding £2 million, while the two larger councils face shortfalls in the tens of millions.

The has caused concerns among some authorities that services will need to be reduced or removed altogether if councils are to even out their balance sheets in 2023-24.

Budgets for gas and electricity bills are increasing by hundreds of thousands of pounds as councils join households in facing the cost of living crisis.

Nottinghamshire County Council says it is expecting a council tax rise and the need to find savings as it faces a £24 million black hole in 2023.

Over the next three years, the Conservative-led authority expects a funding gap of at least £59 million – slightly more than 10 per cent of a single-year budget.

The cash-strapped Labour-run Nottingham City Council does not yet know the overall situation for next year, but revealed inflation will add about £15 million to its financial planning for 2023-24.

It comes amid wider concerns for its overall financial position as the authority remains under monitoring by a Government-appointed Improvement and Assurance Board.

The council is trying to put forward a four-year balanced budget to fend off potential further intervention but rising inflation is now the ‘biggest challenge’ in ensuring commissioners are not sent in.

Coun Adele Williams (Lab), portfolio holder for finance, warned the council faces ‘impossible choices’ when balancing the books.

The authority added it would leave ‘no stone unturned’ in trying to find a solution.

Ashfield Independent-led Ashfield District Council says it is facing a £3 million shortfall, fuelled by the energy and inflation crisis.

Cllr Jason Zadrozny-Bland (Ash Ind), the authority’s leader, previously said ‘easy options’ to make quick savings were made during the period of austerity and warned service reductions could be needed without Whitehall’s help.

Labour-led Gedling Borough Council – which serves Newstead – did not confirm how much it needs to find and said it was waiting for the Chancellor’s announcement later this month.

The wider budgeting issues come as councils also manage rising staff wages amid an expected local government pay award of £1,925 per employee.

The national rise has already added £6.9 million on to the current-year budget at Nottingham City Council and is predicted to add £1 million to the budget at Ashfield District Council.

The Government did not respond to a request from the Local Democracy Reporting Service for comment about the financial position of Nottinghamshire authorities.

But a Treasury spokesperson previously said: “While driving economic growth and tackling high inflation, we will continue to take a responsible and disciplined approach to spending.

“It’s more important than ever that departments work efficiently to manage within existing budgets, focusing on unlocking growth and delivering high-quality public services.”