Local government finance in England has been in crisis for years, and Cornwall Council is no exception. Successive governments of all political colours have failed to properly fund the services they require councils to deliver. Across the country, councils are declaring effective bankruptcy, with high-profile cases in Birmingham, Nottingham, and Woking. While Cornwall has not reached that point, financial pressures are immense, and the current funding system is unsustainable.

The frustration of any local councillor is real. You get elected with the optimism of getting things done for your local community – the reality is one battle after another and a fight for the funding that really makes a difference.

Central government grants have been steadily reduced, while the demands they place on councils continues to go up. Whitehall is forcing councils to rely more on council tax, which is based on outdated property values from 1991. With high house prices and low wages, this is particularly unfair in Cornwall. Business rates, another income source, do not always reflect the modern economy, particularly in tourism-dependent areas.

Meanwhile, demand for services continues to rise. Cornwall Council spends 27 per cent of its budget on adult social care and 25 per cent on children’s social services. That leaves the rest of the budget to cover road maintenance, social housing, the fire service, trading standards, libraries, waste collection, and more. Rising costs for emergency accommodation, special educational needs services, and an ageing population are pushing councils to the brink.

Despite increased demand, the extra funding announced in the government’s Autumn Budget and the new 100 per cent council tax premium on second homes will not cover rising costs. Difficult choices will have to be made to balance the books whoever wins power at County Hall in this May’s local elections.

This is not unique to Cornwall. England’s largest councils warn they are now more likely to reduce adult social care, school transport, and libraries while raising council tax by the maximum allowed. More than four in five county and rural local authorities say they are now in a worse position than before the Autumn Budget, despite the government claiming councils have received a ‘significant real-terms funding increase.’

The County Councils Network (CCN) argues that the government is ‘cherry-picking’ which councils receive funding. A new £600-million Recovery Grant is heavily targeted towards urban councils in the North and Midlands. Consequently, over 90 per cent of county and unitary councils will have to raise council tax by 4.99 per cent, the maximum permitted, but even this will not be enough to prevent further cuts to services.

Many councils anticipate cuts to adult social care, school transport, streetlights, environmental initiatives, and libraries. The government claims its funding formula accounts for deprivation, but the CCN says it has ‘serious technical deficiencies’ and was introduced without consultation. The upcoming fair funding review must be transparent and based on clear evidence to ensure Cornwall and other rural areas are not unfairly disadvantaged.

Nick Craker

Conservative councillor for Liskeard