There is one final chance for the Government to give Cornwall fairer and additional funding ahead of the ‘most challenging budget in the authority’s history", Cornwall Councillor David Harris said today.
The Chancellor will reveal her budget on Thursday, October 30, just one day before proposals to develop Cornwall Council’s draft budget are due to be discussed by the new Budget Development Overview and Scrutiny Committee. The new OSC will make recommendations before the proposals are presented to Cabinet for approval.
The proposals for the OSC are being put forward by Council officers, providing their best professional and impartial advice on how to reach a balanced budget which is achievable and lawful. These include increases to fees and charges, workforce controls and some reductions to service levels. However, even with the proposed savings, the Council still faces a shortfall which must be found in some way.
The new Scrutiny Committee will get an opportunity to see first-hand, proposals from senior officers representing all Council services and understand the tough choices already being proposed by officers and consider what else can be done to present a lawful balanced budget for Cornwall.
Presenting the savings proposals to the new OSC marks the beginning of the budget setting process for Cornwall Council. No decisions will be taken until February next year at Full Council.
Cllr David Harris, the deputy leader of Cornwall Council, and portfolio holder for resources said:
“I want to thank the officers involved in using their expertise to give their best professional and impartial advice as to how to narrow the budget gap, proposing measures which are achievable and lawful.
“But while they may be achievable and lawful, none of these measures are by any means desirable – and this is where Government needs to wake up and understand that the demand for essential services like temporary accommodation, adult social care and SEND provision for young people are rising so fast that no amount of efficiencies and savings put forward by officers can address the shortfall.”
“We are on a precipice, and unless there are some major changes to the way local authorities are funded announced in the Budget, we are facing some exceedingly difficult choices.
“The lack of clarity about the shared prosperity fund will compound the problem. The funding runs out in March. We want to invest in the future to make Cornwall a better place for the next generation. We cannot fund economic growth beyond that date with no money.
“We face the stark reality of all Councils in the UK – without fair funding and a multi-year settlement we cannot run services in the way in which we have done in the past.
“Doing nothing is not an option – we have a responsibility to the people of Cornwall and need to ensure the Council’s finances balance and that they get access to services we are legally required to deliver which is why we are taking the unprecedented step of presenting officer proposals and asking Scrutiny not just for their thoughts on these but also on how we might close the current gap.”
Cornwall Council operates an annual spend of over £1.5 billion, delivering a wide range of frontline services valued by more than 500,000 residents, from schools to adult social care, waste and recycling services, highways maintenance, winter preparedness, business regulation, planning and social housing services to a highly dispersed rural population. Recognised in the last VFM report from independent external auditors as a well-run council, Cornwall was placed in the top quartile for value for money. The unitary authority has already delivered more than £143m of savings in the past 5 years, improved efficiency, eliminated waste and invested in technology to improve customer services and help deliver for less.
As the UK’s largest predominantly rural unitary authority, Cornwall faces some unique challenges in serving residents with some of the lowest household incomes in Europe, weak infrastructure and an economy that remains reliant on seasonal tourism and hospitality, farming and fishing. We also have a super-ageing population: whilst the UK is predicted to reach 1 in 4 being over the age of 65 by 2050, the Cornwall and Isles of Scilly population already has 1 in 4 aged 65+, with our older population set to grow and the working age population set to shrink.
However, like authorities across the UK, Cornwall faces a situation where funding levels are remaining static, while demand for services rise, especially in the areas of young people and SEND, adult social care and temporary housing accommodation.
Therefore, given the mismatch between the money coming in and the rising cost of responding to demand, the proposals put forward by officers necessarily must include:
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Increases in fees and charges.
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Workforce controls.
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Reducing levels of some services.
Cllr Harris added; “We are working hard to minimise the impact on residents by “turning the burners down” rather than stopping services completely.
“But we have a shortfall that cannot be addressed without making complex decisions. Not addressing that shortfall means not balancing the books – and that would be far worse for residents in Cornwall in the long run.”
ENDS
Posted 23 October, 2024