Following the Chancellor's announcement of the 2007 Comprehensive Spending Review, Cumbria County Council's Deputy Leader has warned the council will have to make tough decisions as the savings demanded by central Government clash with rising costs of council services.
The 2007 Comprehensive Spending Review says councils will be expected to achieve cashable efficiencies of at least 3 per cent a year over the three-year period.
Cllr Joan Stocker, Cabinet member responsible for finance, performance and resources, said: "Although we won't know the exact settlement for Cumbria County Council until December, the Government has set its stall out for the next three years and there are tough times ahead.
"We have been anticipating a real-term reduction in our grant and have already planned for a million-pound shortfall as a result of the Comprehensive Spending Review. But this does not disguise the fact that the Chancellor's decision to put local government relatively low on its list of priorities will have an impact on individual communities.
"We are seeing big increases in the council's spending in areas such as the cost of waste disposal and caring for older people. There are also demands to maintain the county's roads and provide children's services outside school hours such as extended schools."
"Today's announcement will inevitably put pressure on the other main source of funding for the county council - money raised through council tax. The council has already achieved efficiencies of £21m and is reviewing its services to deliver them in an even more cost-effective way. But the outcome of the 2007 Comprehensive Spending Review means that an increased pressure is put on council taxpayers and we are having to budget for a 5% increase in council tax again next year.
"Even with a council tax rise at the upper limit of capping levels, we still face a future where frontline services may be impacted in some way. We are doing all we can to minimise that impact. But make no bones about it, our budget is under pressure and Cumbrians will feel the pinch from today's announcement."
ENDS
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