“Disappointment” over North Devon funding settlement

There could be up to a five per cent drop in core spending power

North Devon Council’s finance chief has expressed disappointment at a provisional multi-year funding settlement from the government which could leave the authority being worse off.

The Local Government Funding Settlement sets out what each local authority will get to help them pay for services.

Devon councils have got their wish for a three-year settlement instead of an annual one which has been the practice in recent years.

But whilst this allows them to plan ahead some authorities like North Devon have worked out that the money they can spend will drop by millions up to 2029.

North Devon hoped that the government would be more generous and acknowledge the cost of providing services in rural areas.

The council’s ‘core spending power’, which includes the government grant plus the ability to raise council tax to the maximum level, was £19.5 million in 2025/26.

For 2026/27 the provisional settlement figure is £19.051 million, £18.608 million in 2027/28 and £18.637 million in 2028/29 ranging from a 2.5 per cent to a 4.6 per cent reduction on the current level.

Mr Triggs said: “Some councils nationally have seen increased funding and some decreased funding such as us being a shire district council (operating within a two tier system) which is very disappointing.

“This is a cash reduction on the current level of resources to enable the council to deliver our services, this at a time when inflation has for a number of years has seen significant increases 

“So we are experiencing a cash reduction up to five per cent less over the next three years at a time when inflation is at three per cent annually.”

He said the core spending power had already taken into account the assumption that the council will take advantage of the government’s announcement that councils can increase council tax up to the maximum threshold of three per cent.

“In real terms the above reduction in government grant funding is a much higher reduction as it already assumes the council is increasing its local share of the council tax as part of the figures,” he said.

The government will run a consultation on the provisional settlement until January 14 and consult on the following years as they arrive.