Councillors fear urban shift in budget

DCC leader worried

Senior Devon politicians have expressed nervousness ahead of today’s Budget and issued a call for greater support for the county.

Money aimed at bolstering key services in rural areas, such as adult and children’s social care, was whipped away from Devon last year, leaving a £10 million hole in the county council’s finances, and senior leaders are fearful there could be yet more pain to come.

Some districts have also complained about cuts to government grants, claiming it makes it even tougher on them to deliver the services they are responsible for, like planning and recycling.

County councils also state they are desperate for more clarity on ballooning deficits in their special educational needs and disabilities (SEND) departments, with Devon expected to rack up a deficit of around £50 million just this financial year.

And all councils express a desire to have greater visibility over their financial settlement from government, with many hoping Ms Reeves will pledge to offer councils three-year agreements, rather than deciding their financial payments every year.

“I’m getting very nervous the shift will be for yet more funding away from rural areas and to urban ones, which would be a disaster for us,” Councillor Julian Brazil (Liberal Democrat, Kingsbridge), the leader of Devon County Council said.

“Our SEND budget is a massive problem and the government has kicked the can down the road, yet most councils that provide the service are teetering on bankruptcy.

“Even if we just knew what we had to do, or what will happen with the deficits, that would make a difference, but there is no clarity and that’s disappointing.”

Cllr Brazil also stated the rural services delivery grant – equivalent to £10 million for the county – had been removed last year, and claimed the replacement ‘recovery grant’ had mainly been directed to urban areas.

“There may be even more pain from what we have heard,” Cllr Brazil added about the Budget.

“The government is saying it is taking into account remoteness when delivering things like adult social services, but not children’s, which doesn’t make any sense, and I think the pockets of deprivation will suffer the most.”

Councillor John Downes (Liberal Democrat, Crediton Boniface), the finance portfolio holder at Mid Devon District Council, wants three things from the Budget.

“I would like to see a reduction in VAT on hospitality, as budgets are getting tighter and that affects communities like ours that are so reliant on tourism,” he said.

“I don’t want to see more stealth taxes that reduce the amount of money in people’s pockets, such as increasing National Insurance, which tends to get passed on by companies to consumers.

“And I think the chancellor should be looking at those that can afford tax rises, such as banks and bigger companies, and so putting more money into rural communities, especially coastal and market towns, and  supporting our high streets, which are experiencing a huge pressure from online shopping.”

Cllr Downes added Mid Devon’s settlement from government had been cut by 5 per cent this year, and that reduced income had put pressure on the council.

“I’ve never seen such an uncertain future in a period of so much change,” he said.

The chancellor, Rachel Reeves, is expected to deliver her Budget at approximately 12:30pm today (Wednesday 26 November).