Council leader says North Devon residents will pay the price due to ‘unfair’ Government funding

The leader of North Devon Council is calling on the Government to address a shortfall in funding to local councils for the new financial year.

The council has formally responded to the Provisional Local Government Financial Settlement for 2024/25 with a warning the proposed funding does not take into account an increased demand on essential services or the extra costs associated with delivering services them in a rural area.

The council stands to receive an increase of 4.7 per cent in ‘core spending power’ if it increases its share of the council tax by the maximum amount permitted, compared to an average of 4.9 per cent for district councils generally and 6.5 per cent for the whole local government sector.

It says the funding announced will only partly cover the increased costs of delivering services and after taking into account the high rate of inflation over the last two years, is effectively a funding reduction.

Services such as housing have seen a substantial increase in demand, with the council's spend on temporary accommodation and homelessness prevention doubling since 2020 and high numbers of people applying for support.

The council says rural councils continue to be disadvantaged by the amount of funding they get from the Government, with services costing more to deliver in comparison to urban areas.

Data from the Rural Services Network has found that councils in rural areas will receive approximately £142 less funding per person compared to those in urban areas.

NDC leader Councillor Ian Roome, said he was dismayed the settlement for had ‘once again’ failed to address the added pressures facing rural councils, while costs and demand increased.

He said: “The harsh reality is that without sufficient Government funding it is residents and communities who pay the price through increased council tax bills and cuts to services.

“We are conscious of the strain the cost of living crisis is having on our residents and are committed to helping our communities every day with a wide range of services.

“That is why we are calling on the Government to take steps to ensure North Devon and other councils in our position are given fairer funding.”

Mr Roome has written to North Devon MP Selaine Saxby, urging her to make representations to the Government and not vote for the provisional settlement in its current form.

The Final Local Government Finance Settlement is set to be announced in February.