Budget dealt another body blow

The County Council's budget plans have been hit again by the Government's final announcement about the amount of money it thinks should be spent on the Council's services next year. Late yesterday the Council learnt that another half a million pounds grant had been removed from the spending formula, despite the recent lobby to London for improvements in the Highways maintenance settlement. The County Council's Cabinet today considered this late change. County Councillor Mike Ash, Deputy Leader of the Council, who chaired the Cabinet Budget Sub-Committee says: 

"This is yet another body blow in planning our spending and council tax level for the next twelve months. We've already had tough talking and made some tough decisions but now we are faced with the prospect of coping with a further savage cut of half a millions pounds at the eleventh hour. All this despite the strong argument put before the Government for increases in our highways grant. The news only came through yesterday and we need time to work out exactly what we will do. We had already thought that the maximum council tax increase we should recommend be 11.9%, and we'll do all we can to stick to that. 

Let's remember we started with a very poor government grant settlement, dominated by the fact that our grant on highways maintenance had been cut by £5.5 million. The draft budget we have recommended today, despite that, makes significant investment in areas such as education and social services and looks to prevent any reductions in frontline services. We are passing every penny to schools from the settlement and continuing to invest heavily to combat bed-blocking. At the same we are looking for over £1.5m of efficiency savings. The draft budget also reflects the great public concern about the state of the roads in Cumbria. After considering everything that has been said we decided we should raise an additional £2.7 million from Council Tax. That means an 11.9% rise in Council Tax. This will go some way to replacing the grant taken away by government. 

Lets be honest, the less we spend on road maintenance, the worse they will become and that could create big problems in the future. There was a strong argument therefore to put back the full £5.5 million. The public consultation clearly showed the great concern people across the "county have about the state of their local roads. And it's a concern that we have tried to address. 

Despite the poor settlement we have endeavoured to protect frontline services, there is significant investment in areas like education and social services which are so important to the daily lives of so many people and we have done everything we can to overcome the problems caused by the reduction in the Highways Maintenance Grant. We must look again in the light of yesterday's news but hope we won't have to ask local council taxpayers to make up the latest half a million pound cut from Government." 

After debate the Cabinet recommended a revenue budget of £444 million for the year 1st April 2003 to 31st March 2004 that will focus on protecting front line services. Following the recent public consultation into what the Council should do about the reduction in the government grant on Highways Maintenance, the Cabinet agreed to put £2.7 million back into this budget. As a result the Cabinet's recommendation to the Annual Budget Meeting of the County Council on the 20th February would increase council tax by 11.9%. Further consideration will be given to impact of the latest changes in the Government's spending assumptions with final recommendations being taken to the meeting on the 20th. 

Further work will also be done to ensure that the money put back into highways maintenance is spent most effectively. Councillor Kevan Wilkinson, Cabinet Spokesman on Transport & Infrastructure explains: 

"I've asked our officers to review exactly how that highways maintenance money will be spent. It was clear from the public consultation there are great concerns at a local level about the state of the roads and issues like pot-holes and street lights. We want to make sure that the money is targeted to where it is needed most, and I look forward to hearing proposals from the officers in the weeks to come. We will also monitor closely the impact that this grant reduction has during the year so that we can lobby strongly for an improved settlement next time."