William Eichler 19 October 2017

County funding black hole set to treble to £2.5bn by 2021

An ‘extreme’ rise in demand on county authorities will treble their funding black hole to over £2.5bn in the next four years, county leaders reveal.

New analysis from the County Councils Network (CCN) has revealed their funding gap will increase to £2.54bn by 2021 - a situation they describe as ‘unsustainable’.

In total, the analysis found, each of the 37 county authorities on average will face an additional funding gap of £70m by 2021, on top of planned service reductions.

Social care will account for £26m of this for each authority and the new national living wage will cost £22m per authority.

County leaders have warned ahead of next month’s Autumn Budget that very ‘difficult, painful and unpopular decisions’ will have to be made unless new resource is found.

‘Counties have had the greatest financial challenges in the last five years and this evidence adds to the case,’ said CCN chairman Cllr Paul Carter.

‘We are reaching a point where we are have to consider difficult, painful and unpopular decisions next year to deliver balanced budgets, which will reduce and remove frontline services highly valued by our residents.

‘The Government has said it is in listening mode, and I and my fellow county leaders will be asking Ministers across government that we need additional help and support in this Budget or we will all face some very severe consequences in the future. The situation can’t go on.’

In their Budget submission, the CCN called on the Government to provide the Department for Communities and Local Government (DCLG) with the resource to extend Transition Grants until 2021 in order to allow counties to deliver services whilst an alternative way of funding councils is finalised.

County funding black hole set to treble to £2.5bn by 2021

The submission also called for the removal of the referendum limit on council tax levels and for a ‘common devolution framework’ that would see counties as ‘strategic authorities’ alongside the mayoral combined authorities.

The forthcoming Industrial Strategy Whitepaper must address concerns over the narrow focus on city regions and provide a prominent role for counties, according to the submission.

‘CCN’s submission sets out a range of policies to help quell the inevitable impact of staring a funding black hole of £2.54bn in the face,’ said Cllr Carter.

‘It also contains ambitious proposals to kick-start county devolution, calling on the government to be bold and endorse counties as strategic authorities, giving us the powers to be the masters of our own economic destinies.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Adults, Health & Wellbeing

Stockton-on-Tees Borough Council
£148,537
You will lead a diverse portfolio spanning Adult Social Care, Public Health, Housing, Fairer Stockton-on-Tees and Strategic Commissioning. Stockton-on-Tees, Durham
Recuriter: Stockton-on-Tees Borough Council

Practice Supervisor – Family Assessment and Support Team (FAST)

North Yorkshire Council
£47,181 to £51,356 per annum pro rata
Together, we are making a positive difference to the lives of children and families across North Yorkshire every day. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Children's Residential and Edge of Care Worker

North Yorkshire Council
From £32,578 up to £35,570 per annum
We are looking for resilient, flexible, and motivated people who have experience working with or volunteering with older children and young people Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

SEND Casework Manager

North Yorkshire Council
£48,738 to £53,051 per annum
You will work collaboratively with schools, health colleagues, social care professionals, families and partner organisations Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Head of Property and Regeneration

Swansea Council
£91,558 - £104,327
We are seeking to appoint an outstanding and experienced professional as Head of Property and Regeneration Swansea (Abertawe)
Recuriter: Swansea Council
Linkedin Banner