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WC raises serious concerns.
Wiltshire Council Cabinet has voiced serious concerns over proposed reforms to distributing local authority funding in England warning of the potential financial impact on Wiltshire and a lack of clarity, in their response to a wide ranging consultation issued by Government.
While the council supports the need to modernise the current funding system, initial modelling suggests Wiltshire could lose more than £4 million over the next three years, with the most significant reductions in the first two years.
The Government’s eight-week consultation spans over 100 pages and includes 46 detailed questions but doesn’t provide worked examples of the financial impact. The lack of clarity makes it challenging for councils to fully assess the implications of the proposed changes.
Wiltshire Council has also raised concerns about the reliance on assumed 5% council tax increases and a 100% collection rate to calculate the amount Government deem councils need to fund services (Core Spending Power (CSP)), which it says is flawed and unfair. Assumptions such as these impact the value of the grants the council receives.
Cllr Gavin Grant, Cabinet Member for Finance said: “We support the principle of fair funding and welcome the idea of a multi-year settlement to help us plan with more certainty. However, the current proposals lack transparency and potentially risk placing Wiltshire Council in a more difficult and detrimental financial position. It is almost impossible to fully assess the implications of these detailed proposals with the limited information provided, although it is apparent that Government are not adequately reflecting the cost of delivering services in rural locations and focusing funding more on their measures of deprivation.
“It is also unrealistic of Government to expect councils to provide vital services such as social care, while receiving below average funding increases over the next three years and ultimately reductions in Government grant funding.
“These proposals come at a time when all councils are under immense pressure, particularly in areas such as social care and Special Educational Needs & Disabilities. Without more detail it is very difficult for us to understand the true impact of these proposals and it is likely we won’t know until the provisional local government finance settlement is announced which is usually received in December.
“We urge the Government to carefully consider the feedback it receives and ensure the final settlement is fair and appropriate for rural councils like Wiltshire. Meanwhile we will continue to advocate for a fairer, evidence-based funding system that reflects the needs and responsibilities of local authorities.”