Opposition concern over lack of debate about Derbyshire's £46m funding blackhole

Derbyshire County Council’s opposition Labour leader has raised concerns that the prospect of any debate with the Conservative-controlled local authority over its projected £46m budget deficit could be as long as six weeks away.

Opposition Labour Group leader, Cllr Joan Dixon, claims many councillors were shocked to learn about the council’s finances by an email sent after Council Leader Barry Lewis chose not to report the budget deficit at the full council meeting on September 13 – although it was formally announced at a cabinet meeting on September 21.

Cllr Dixon and fellow Labour councillors Ruth George, Damien Greenhalgh, Joel Bryan and Christine Dale, submitted a formal requisition for an urgent council meeting to receive a report on the financial situation and for an opportunity to question Cllr Lewis but claim this was declined with the prospect of any debate put back until a newly scheduled November 29 meeting.

The Labour Group Leader, Cllr Dixon, said: “The sudden deterioration in the council’s finances has come as a great shock to many.

“There are so many questions to be answered as to how this has happened. We feel that the people of Derbyshire need to know what has gone wrong and what it means for local services.

“We asked for an urgent debate but, yet again, the Tories avoid scrutiny and do not wish to be held to account or explain to people what this means for local services.

“What’s more galling is that on the day this financial report was published, Cllr Lewis stood in the Chamber and said he had nothing to report to Full Council.”

The Council Chairman Trevor Ainsworth, declined an earlier meeting ahead of November to debate the issue, according to Cllr Dixon, and this followed a previous ruling that the Labour Group Leader could only be allowed to ask one question on the issue at the council’s cabinet meeting on September 21.

Cllr Dixon stated that last year the council used £50m of reserves to balance the books and this year planned to use another £29m before the £46m budget deficit was announced, and it has recently spent nearly £57m as part of a legal settlement over a failed waste plant dispute.

She added: “Now they’re saying that the need to make £46 million of in-year savings by the end of March 2024 is not an urgent matter and doesn’t warrant a meeting of full council for another six weeks.

“Meanwhile, vacant positions aren’t being filled, non-essential spend has ceased and services across Derbyshire are being affected.”

Council Leader, Cllr Lewis, said on his Twitter/X feed that Cllr Simon Spencer, Cabinet member for the Budget, wanted to be able to discuss the projected budget deficit with residents first and in the following days Cllr Lewis added that he undertook multiple media interviews on the issue.

He also stated: “It was right and proper that Cllr Spencer wanted the opportunity to introduce and discuss that topic with residents and the public on the day the reports were released, and that appropriate communications was [were] undertaken with staff (especially) and communities.”

Having been accused of not reporting the budget deficit at the full council meeting on September 13, Cllr Lewis added: “Notwithstanding my points about the importance of firstly informing the staff, whether I use the opportunity to report at that item as the Leader of the Council is, I understand, at my discretion and it has never been called into doubt, by officers or members, that any report must be given at that point.”

Cllr Lewis stated that the opposition group leaders were given comprehensive briefings on the day of the council meeting on September 13 and they had access to the relevant papers, comments and press releases from the administration and corporate communications to the staff.

He added that Cllr Dixon’s request for a meeting suggests the Labour Group has ‘no sensible grasp of the situation’ and Cllr Dixon’s comments were ‘deeply irresponsible’ and nothing more than ‘scaremongering’.

He also accused Cllr Dixon of wasting council time and resources by now forcing the council to introduce an additional council meeting on the morning of November 29 with the scheduled full council meeting to follow in the afternoon of the same day.

Cllr Lewis also claimed Cllr Dixon had not taken the opportunity to submit a question at the last Cabinet meeting.

The council has already announced it is to stop all non-essential spending and implement a hiring freeze, due to the predicted overspend on its budget of £46m by next March.

Cllr Lewis told the Cabinet meeting on September 21 that the council is  working hard, looking at essential and non-essential services, and is hoping to lobby Government for support and is looking at staffing and overtime.

Cost-cutting measures include: A recruitment freeze – with some exceptions for essential, roles;   Reducing agency staff; Reducing overtime and additional hours; Reviewing all agency staff; No non-essential conferences, travel or training; Only health and safety repairs on properties; Reducing spend on print, IT equipment and stationery; Delaying unsigned contracts; And postponing projects that are still in the planning stage.

The council claims that, like other councils across the country, high inflation has impacted all areas of council expenditure and has had an impact on the demand for council services, and the expected 2023/24 pay award for its staff has placed a significant financial pressure upon the authority.

Derbyshire County Council is also looking at possibly selling off its County Hall building, at Matlock, which may be converted into a hotel, or residential space, offices and community facilities.

It has also previously announced plans to close ten of its Chesterfield area offices, and it has been looking at cutting opening hours and bringing in potential charges at its household waste tips.

Opposition Labour leader, Cllr Dixon, has previously blamed years of local Government funding cuts by the Conservative Government and financial mismanagement  for the council’s plight.

County Council Liberal Democrat Leader, Ed Fordham, has also previously said the Government has starved councils of investment and that the poor handling of the economy and inflation were to blame for the situation.

Derbyshire County Council confirmed that its cost-control measures are already being implemented and officers are scrutinising all spending and hundreds of projects with the aim of ensuring the council’s budget gets back on track by the end of March 2024.

A council spokesperson said: “There are no plans for large-scale closure of services, significant redundancies or voluntary redundancies to meet our in-year savings.

“We cannot say whether this situation will change but work continues to ensure we are able to set a balanced budget for 2024/25 despite the continued budget challenges we know we will face.

“In the last 13 years, the council has saved more than £300m and in this year alone the budget we set included savings of a further £14m.”

Derbyshire County Council stated that the fact the authority is forecasting a £46m overspend,  even with its previous, planned savings, demonstrates the challenge it is facing.

The council spokesperson added: “We are doing all we can and our dedicated employees are working hard to continue to deliver the best services in the circumstances.”