Financial information
We operate 2 main accounts. The majority of our services are accounted for within the general fund account and are funded from a number of sources including Council Tax as outlined below.
The second account is the housing revenue account, this can only be used for the provision of council housing and is funded by housing rents. This statement refers to the Council’s general fund only.
In summary our budget forecast shows that we will be spending more money per year on services than we get in tax and other income. This assumption is based on significant lack of clarity about the timing of implementation of Local Government Funding Reform and the level of future government funding we will receive following implementation. This is not unique to Ashfield; all Council’s face the same issue.
In the absence of this funding clarity, it is our assessment that this situation may continue for some time into the future and will require us to cut costs and maximise income if we wish to remain financially viable.
The funding gap
We receive income from a number of key sources including:
- our share of local Council Tax
- our share of National Non-Domestic Business Rates
- New homes bonus (Government grant)
- Revenue support grant (Government grant)
- Services grant (Government grant)
- Minimum funding guarantee (Government grant)
- locally generated income such as commercial rents, fees and charges.
Over the next 2 years our forecasts show our income will not meet our expenditure and that we could be faced with a budget shortfall of up to £7.0 million, depending on what changes are made by the Government to our funding.
Our reserves
Our reserves position is relatively healthy, however, it should be noted we are concerned about the level of our reserves and whether they will be sufficient to smooth the transition to the new level of funding once local government funding reform is implemented.
We hold:
- a general fund reserve to underpin our annual revenue budget but this is not sustainable in the long term
- Earmarked reserves are set aside to fund specific projects or initiatives. It is sensible for us to put money aside (when we are able to) in order to pay for things coming down the line.
We hold £18.6 million in earmarked reserves at 31 March 2023 and a general fund reserve of £9.2 million.
In terms of capital reserves, these include grants from a number of funders plus developer contributions, and can only be utilised in accordance with set conditions. We held £7.3 million as at 31 March 2023.
Housing Revenue Account
In addition to the general fund we also have a housing revenue account (HRA). This is necessary to meet the statutory obligation to account separately for local authority housing. The main source of funding for the HRA is council housing rent.
Housing rents can only be used to pay for the delivery of council housing. These rents cannot be used to pay for non-housing services and therefore cannot be used to subsidise Council Tax.
In addition to the delivery of housing services, the HRA pays for the investment in council housing improvements such as new roofs, kitchens and bathrooms. It is also utilised to develop new housing within Ashfield.
The HRA balance as at 31 March 2023 was £43.3 million. Our minimum balance requirement for this account is £2.5 million. The HRA also has Earmarked Reserves of £0.5 million.
The above are based on the 2022 to 2023 audited accounts.
Fees and charges 2024 to 2025
You can find current fees and charges information, charged by our services within the Fees and charges document in the related documents section of this page.
2024 to 2025 Annual budget and Council Tax
(Including Medium term financial strategy update, Capital strategy and Treasury management strategy)