Taxpayers in North Devon set to pay big costs of local government shake-up

Cash-strapped North Devon Council is having to squirrel away £175,000 per annum for the next two years for the costs of local government reorganisation (LGR)  and has been warned it could be more.

Council leader David Clayton (Lib Dem, Barnstaple with Westacott) has proposed that a letter be written to the government to express the council’s disgust at having to fork out for the costs of something which is not of its making.

New large unitary authorities will take the place of district and county councils in 2028, a move which some local councillors feel will reduce democracy.

Cllr Clayton is in favour of the local government shake-up but said at a strategy and resources committee meeting this week to discuss the budget that the taxpayer should not be paying for it.

Councils have had to already employ consultants to work up proposals for the new look authorities which were submitted to ministers in November and costs will be ongoing to transition.

“We have to carry out the government’s work on LGR, it’s appalling that the government is not picking up the tab for this,” said the leader. “ We should ask them why we are having to look at cuts in services to find the £175,000. LGR is a good thing but the money should be coming out of national government.”

Chief finance officer Jon Trigg said the £175,000 was an optimistic figure and it was likely to cost more than that.

North Devon Council decided this week to reverse its decision to scrap the non statutory trade waste collections, after a public outcry, which had been running at a loss and put prices up by 46 per cent in a bid to recover the cash. It has ended the trade recycling service to all accept for those small businesses whose recycling is picked up on domestic rounds.

The extra cash will help bridge a £1.6 million budget gap that was predicted for 2026/27.

At the meeting this week councillors were presented with a balanced budget for the forthcoming year

Other income generators or savings include garden waste collections rising from £60 to £65 this year, a phased transfer of public conveniences to parishes, pension revaluation, use of the budget management reserve and Green Lanes shopping centre additional business rates costs. 

Jon Trigg explained that the provisional multi year funding settlement from the government left the council with a real cuts funding reduction of 10 per cent when inflation was taken into account.

North Devon is believed to be one of two councils in Devon which come the worst off from a fairer funding review.

The revised formulae by the government attempts to curb the pressures felt in the local government sector particularly in respect of social care and homelessness and rebalance funding where economic growth has been slower. 

However, there is a greater focus on deprivation and less significance given to sparsity and rurality, said Mr Trigg in his report to council.

The council’s core spending power, which is the total revenue available to local authorities for services, assumes a council tax rise of 2.99 per cent, an increase of £6.48 for the year on an average Band D property. This is the maximum the council can charge without holding a referendum.  It will bring in £8.6 million towards the council’s revenue budget of £20.6 million.

The council’s budget this year includes a three per cent increase on salary costs.

It has a capital programme of projects worth £28 million, with £12 million funded by external grants.

A new healthy homes projects in Ilfracombe and temporary housing as part of the Barnstaple’ Boutport Street redevelopment to create a cultural hub, housing and employment units are listed for this year.