Council chief fears over authority funding gaps

12 hours ago

Pete Otway,BBC Radio Cumbriaand

Federica Bedendo,North East and Cumbria

Westmorland and Furness Council needs to save £134 per resident to bridge financial gaps

LDRS Kendal's historic town hall, with a clock tower, situated on the streets in the centre of the town and surrounded by busy roads and shops. — Westmorland and Furness Council needs to save £134 per resident to bridge financial gaps

Years of underfunding from central government means local authority finances are close to collapsing, a council boss has said.

A BBC Shared Data Unit investigation revealed Cumbria's two councils are among those planning the highest budget savings in England, according to BBC analysis.

Liberal Democrat-led Westmorland and Furness Council is in sixth position nationally, with savings needed of £134 per resident, while Labour-run Cumberland sits in 10th with £115. Warrington came out on top with £186 per head.

Westmorland and Furness' cabinet member for finance Andrew Jarvis said it was a "crisis of funding" for the authority. The government said it had made £78bn available to councils this year.

The BBC's data analysis shows councils need to find another £4bn to plug the financial blackhole.

Jarvis, who is also the council's deputy leader, said: "We've had years of underfunding in local government, but also we've got high growth in what we call pressures - it's effectively the demand on services, particularly in adult social care and in special educational needs."

Deputy leader Andrew Jarvis said Westmorland and Furness Council was suffering a "crisis of funding"

Councillor Andrew Jarvis. He wears glasses and has a bald head with grey hair at the sides. He is standing in what appears to be a council chamber, although the background is blurred. — Deputy leader Andrew Jarvis said Westmorland and Furness Council was suffering a "crisis of funding"

He added rural counties faced greater struggles than councils in urban areas.

"[The Labour government] do not recognise the fact that rural councils have higher costs.

"It's more expensive to collect bins, it's more expensive to provide services over remote areas.

"They do not recognise that and as a result we are losing significant funding... We are suffering badly from the settlement."

Both Cumberland Council and Westmorland and Furness have been raising their council tax, with the latter also introducing charges for garden waste.

Jarvis said he did not know what measures the council may adopt to bridge the funding gap, but the council was planning to hold its budget meeting in December, instead of February, so it would have time to consult with residents about any changes it may propose.

A spokesperson for the Ministry of Housing, Communities and Local Government said its funding settlement to local councils was awarding more funding for adult social care, as well as specific support for schools for children with special educational needs.

"We're making £78bn available to local authorities across the country this year through our fair funding settlement - and thanks to our changes, nine in 10 councils in England will receive funding that matches their relative need by the end of 2028-29."

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