TCI commentary:
Smart work by Cornwall – though it will be interesting to see the response to its ‘voluntary contributions’ idea.
Apart from the novelty of a council that says it is in a financially okay, what’s interesting is its emphasis on public consultation. It is relying on a significant residents survey and points to more public involvement as they seek further £31m of savings in the next financial year.
Article:
Another 3.99% increase in council tax has been proposed for Cornwall in an outline of next year’s budget revealed at a County Hall briefing this morning.
But according to Cllr Julian German, who was citing the latest resident’s survey, many people would be prepared to pay even more so he is proposing a ‘voluntary contribution’ scheme to allow you to give the council even more cash.
These voluntary contributions couldn’t be spent on core services but could be given out as community grants.
The details of his scheme are yet to be thrashed out – ironically because of lack of resources – but Cllr German made it clear it was not about asking the public to bail out the council.
Julian German, Deputy Leader of Cornwall Council, said: “We don’t take the proposal to increase council tax lightly because we understand the impact austerity has had on households across Cornwall. However, to ensure we can continue to protect those residents in need, and provide critical services for the people of Cornwall, we are asking residents to pay a little more.”
The new increase equates to 88 pence per week for a band B property, the most common in Cornwall, and would be broken down into a 1.99% increase in council tax, and a 2% precept for adult social care services to fund increasing demand.
However the draft budget produced this morning was not a balanced budget – meaning that more is being spent than is coming in – so ideas and details of extra cuts, ‘efficiencies’ or indeed extra income will have to be thrashed out between now and the final budget proposal that will go before the council in February 2019. It is a legal requirement to deliver a balanced budget.
The proposed rise was announced today as part of Cornwall Council’s draft budget proposals for the 2019/20 financial year. Simultaneously, a public consultation was launched to ensure the people of Cornwall have their say during the budget setting process.
The draft budget proposals come amid a continued climate of deep budget cuts from central government which has seen core funding slashed from £150m four years ago to £14m next year. The Council’s ambition is to be self-sufficient from April 2022, raising funds through council tax, business rates and charging for services.
But Councillor German said it was important to note that compared to other councils across the country, like Northamptonshire or Somerset, Cornwall Council is handling the era of austerity quite well.
Several councillors called on extra pressure to be put on the government to close the holiday homes tax loophole that costs Cornwall over £10m a year.
For those members who still don’t know the difference, a briefing note will be sent out to all councillors this afternoon that will explain in simple terms the nuances of capital expenditure and revenue spending.
Cllr German added: “Next year will mark 10 years since the formation of Cornwall Council. Despite a bleak outlook in other parts of the country, we are in a solid financial position to weather inevitable further funding cuts from central government and an ever increasing demand for services.
“We are not in this position by chance. It is down to a decade of prudent financial planning, a programme of savings equating to £350 million, and an early recognition that we needed to find different ways to provide services for less money.
“However, there is still work to be done. We need to find savings of £31m next financial year and further savings totalling £67 million by 2022/23. These must be achieved whilst ensuring we continue to protect vulnerable children and adults in our communities, maintain and improve our roads, ensure affordable homes are built for local people, help our schools thrive, and provide a green and prosperous Cornwall for residents both now and in the future.”
Throughout the autumn and winter, Cornwall Council will be consulting on the draft budget proposals.
This article originally appeared on Cornish Stuff
The Institute cannot confirm the accuracy of this story or confirm that it presents a balanced view. If you feel this is inaccurate we would welcome your perspective and evidence that this is the case.
