According to a recent comment by the Local Government Association (LGA) “Local government is the fabric of our country. It provides more than 800 services and positively impacts the daily life of every person in every community. However, the future financial sustainability of councils is on a cliff-edge, and the scale of the pressures cannot be met by reducing costs, making efficiencies or raising council tax.
Many now face the prospect of having to make severe cutbacks to local services. This would not only damage our communities but massively undermine Government ambitions to boost economic growth, level up the country and help residents through the cost-of-living crisis. Inflation is not going to come down overnight. Reserves can only be spent once. A local service cannot be cut twice”.
In October James Jamieson, Conservative Chair of the Local Government Association said “Councils are now having to try to find ways to meet these costs this year and limit the damage to the local services that so many people rely upon.
In the past decade, councils have done more than their fair share of the heavy lifting when it came to putting public finances on a more sustainable footing, having faced a £15 billion real terms reduction to core government funding between 2010 and 2020.
The Government needs to ensure councils have the funding to meet ongoing pressures and protect the services that will be vital to achieve its ambitions for growth and to produce a more balanced economy, level up communities and help residents through this cost-of-living crisis”.
All of this provides a backdrop to the current financial difficulties facing local authorities as the LGA has calculated that rising inflation, National Living Wage and energy costs have left councils facing £2.4 billion in extra cost pressures this year (2022/23), with estimated funding gaps of £3.4 billion in 2023/24 and £4.5 billion the year after.
Indeed, the LGA has warned against further cuts to local government funding, in addition to their cumulative loss of £15 billion of central government during the decade from 2010. Underfunding local services also has a knock-on effect on the wider economy, businesses and residents, and other public services.
To reinforce the difficult financial challenges facing local authorities on 1 November Conservative Leader of Devon County Council, John Hart said "I have been a county councillor for more than 30 years and leader of Devon County Council for nearly 14 years during which time we have been through the austerity years and the pandemic, but our financial situation has never been so bleak as it is now."
Indeed, this council has lost, £51.8 million in government financial support since 2010. This has held back service development, investment in key infrastructure, including building our own homes and led to local residents and businesses having to pay more as a result.
However, with adequate funding, councils can protect and invest in local services, deliver for our communities, support economic growth and level up everywhere.
This is why the LGA is calling for a long-term government plan to manage the crisis in councils’ finances and has warned against cutting their funding. We have to, by law, balance our books each year, which means when costs rise, we must find equivalent savings in our budget elsewhere.
To save the local services we all rely on, councils need adequate funding, in line with inflation and the demand for services, and certainty to plan their budgets to minimise service disruption. Which is why the LGA is running its Save Local Services campaign http://www.local.gov.uk/save-local-services.
This Council resolves to –
(i) Endorse James Jamieson and John Hart’s quoted concerns about the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(ii) Register its support for the LGA’s Save Local Services campaign;
(iii) Publicly promote implications of the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(iv) Work with other Devon local authorities, preferably through Team Devon, to lobby for adequate local government funding both in the immediate and longer term;
(v) To invite our local MPs to support this council’s local government funding concerns and to work with it and other Devon local authorities in lobbying for adequate local government funding both in the immediate and longer term.
Proposed by: Cllr Jack Rowland
Seconded by: Cllr John Loudoun
Supported by: Cllr Cathy Gardner, Cllr Nick Hookway, Cllr Denise Bickley, Cllr Eileen Wragg, Cllr Geoff Jung, Cllr Marianne Rixson, Cllr Tony Woodward, Cllr Jo Whibley, Cllr Vicky Johns and Cllr Paul Hayward
Minutes:
The Chair invited Cllr Rowland as the proposer, to speak to the motion.
Cllr Rowland read some contextual information behind the proposals in the motion.
According to a recent comment by the Local Government Association (LGA) “Local government is the fabric of our country. It provides more than 800 services and positively impacts the daily life of every person in every community. However, the future financial sustainability of councils is on a cliff-edge, and the scale of the pressures cannot be met by reducing costs, making efficiencies or raising council tax.
Many now face the prospect of having to make severe cutbacks to local services. This would not only damage our communities but massively undermine Government ambitions to boost economic growth, level up the country and help residents through the cost-of-living crisis. Inflation is not going to come down overnight. Reserves can only be spent once. A local service cannot be cut twice”.
In October James Jamieson, Conservative Chair of the Local Government Association said “Councils are now having to try to find ways to meet these costs this year and limit the damage to the local services that so many people rely upon.
In the past decade, councils have done more than their fair share of the heavy lifting when it came to putting public finances on a more sustainable footing, having faced a £15 billion real terms reduction to core government funding between 2010 and 2020.
The Government needs to ensure councils have the funding to meet ongoing pressures and protect the services that will be vital to achieve its ambitions for growth and to produce a more balanced economy, level up communities and help residents through this cost-of-living crisis”.
All of this provides a backdrop to the current financial difficulties facing local authorities as the LGA has calculated that rising inflation, National Living Wage and energy costs have left councils facing £2.4 billion in extra cost pressures this year (2022/23), with estimated funding gaps of £3.4 billion in 2023/24 and £4.5 billion the year after.
Indeed, the LGA has warned against further cuts to local government funding, in addition to their cumulative loss of £15 billion of central government during the decade from 2010. Underfunding local services also has a knock-on effect on the wider economy, businesses and residents, and other public services.
To reinforce the difficult financial challenges facing local authorities on 1 November Conservative Leader of Devon County Council, John Hart said "I have been a county councillor for more than 30 years and leader of Devon County Council for nearly 14 years during which time we have been through the austerity years and the pandemic, but our financial situation has never been so bleak as it is now."
Indeed, this council has lost, £51.8 million in government financial support since 2010. This has held back service development, investment in key infrastructure, including building our own homes and led to local residents and businesses having to pay more as a result.
However, with adequate funding, councils can protect and invest in local services, deliver for our communities, support economic growth and level up everywhere.
This is why the LGA is calling for a long-term government plan to manage the crisis in councils’ finances and has warned against cutting their funding. We have to, by law, balance our books each year, which means when costs rise, we must find equivalent savings in our budget elsewhere.
To save the local services we all rely on, councils need adequate funding, in line with inflation and the demand for services, and certainty to plan their budgets to minimise service disruption. Which is why the LGA is running its Save Local Services campaign http://www.local.gov.uk/save-local-services.
He went on to explain the particular pressures facing EDDC, which included, reduced central government grant, constraints on the amount which can be raised via Council Tax (currently at 1.99% or £5 per annum) and via Planning applications fees which are also set by central government, and current inflationary pressures. He also gave examples of financial support EDDC has given to support services to the community, such as LED, or via small capital grants to maintain vital local assets.
Cllr Rowland concluded by reading the proposals of the motion as follows;
This Council resolves to –
(i) Endorse James Jamieson and John Hart’s quoted concerns about the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(ii) Register its support for the LGA’s Save Local Services campaign;
(iii) Publicly promote implications of the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(iv) Work with other Devon local authorities, preferably through Team Devon, to lobby for adequate local government funding both in the immediate and longer term;
(v) To invite our local MPs to support this council’s local government funding concerns and to work with it and other Devon local authorities in lobbying for adequate local government funding both in the immediate and longer term.
Cllr Loudoun as seconder did not wish to speak at this point.
Cllr Rowland requested a recorded vote.
The Chair requested a vote of those in favour of a recorded which was carried.
Cllr Skinner asked for clarification on the timing of the Government’s review of Local Government and whether it affected the necessity of this motion.
The Chief Executive said that the Government’s announcement was expected on 21st December, but was not relevant to the motion because the motion was being encouraged by the LGA nationally. The LGA is currently under Conservative control, so it is not a party political issue but one about fairer funding for all Local Authorities.
The Chief Finance Officer confirmed that the announcement to be made on 21st December would be about keeping within the overall levels announced in the autumn statement, so there would be no increases, and it was likely to be static next year. Only the level of funding for each individual local authority was unknown at present.
Cllr Bonetta said that the motion was an excellent one and was pleased that it had received support of high level Conservative leaders. However, he reminded members that those from whom we were asking for support in government were the ones responsible for a real time cut of 37% between 2010 – 2020, without taking into account Council Tax or Business rates, so it was surprising that such a campaign had not occurred before.
Cllr Loudoun said that regardless of the impending financial settlement, the impact on the local situation over the last ten years needed to be understood. He went on to say that this motion was significant because it was about supporting the LGA, of which EDDC is a member, and which was saying to government that ‘enough is enough’. This had become a cross-party issue about the fact that short term and long term changes to funding were required, and so he hoped that all members present would give their support to the motion.
Cllr Rowland did not wish to comment further after all the comments already made.
The Chair accordingly asked for the recorded vote to take place.
Recorded vote:
Councillors Megan Armstrong, Paul Arnott, Jess Bailey, Denise Bickley, Kevin Blakey, Kim Bloxham, Jake Bonetta, Chris Burhop, Fred Caygill, Maddy Chapman, Andrew Colman, Bruce De Saram, Alan Dent, Peter Faithfull, Cathy Gardner, Steve Gazzard, Sam Hawkins, Paul Hayward, Nick Hookway, Stuart Hughes, Ben Ingham, Sarah Jackson, Vicky Johns, Geoff Jung, John Loudoun, Dawn Manley, Paul Millar, Helen Parr, Marianne Rixson, Jack Rowland, Eleanor Rylance, Philip Skinner, Brenda Taylor, Ian Thomas, Joe Whibley, Tony Woodward, Eileen Wragg, Chris Wright, Tom Wright - voted in favour – 39.
Councillors – voted against – 0.
Councillors – abstained – 0.
Following a recorded vote the Chair confirmed that the motion had been carried unanimously.
RESOLVED:
that this Council will –
(i) Endorse James Jamieson and John Hart’s quoted concerns about the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(ii) Register its support for the LGA’s Save Local Services campaign;
(iii) Publicly promote implications of the poor local government funding of the past decade and the need for the government to now adequately fund this sector;
(iv) Work with other Devon local authorities, preferably through Team Devon, to lobby for adequate local government funding both in the immediate and longer term;
(v) To invite our local MPs to support this council’s local government funding concerns and to work with it and other Devon local authorities in lobbying for adequate local government funding both in the immediate and longer term.