Agenda item

Purpose: To consider the impact on West Berkshire, its residents and communities, of the government’s provisional financial settlement for local authorities.

The Council considered a requisition to the Chairman of Council to consider the impact on West Berkshire, its residents and communities of the government’s provisional financial settlement for local authorities.

Councillor Jeff Brooks introduced the grounds for the requisition, highlighting the significant financial challenges faced by the Council due to reductions in government grants and changes to the funding formula. He explained that the Council was increasingly reliant on borrowing to cover day-to-day costs, which would ultimately burden residents with repayment obligations. Councillor Brooks emphasised that the recommendations included with the requisition were not intended to criticise the government but to make a reasoned and polite request for a review of the funding formula to ensure fairness. 

Several councillors elaborated on the financial pressures, particularly in areas such as Adult Social Care and Children’s Services, which were experiencing rising costs and demand. Councillor Heather Codling expressed concern about the escalating complexity of cases and the associated financial burden. She stressed that children were not to blame for the pressures and that the Council had a responsibility to ensure the system supporting them was adequately funded.

It was noted that the government’s funding formula disproportionately impacted West Berkshire due to its classification as a low deprivation area, despite the Council facing significant challenges such as an ageing population, rural service delivery costs, and increasing demand for specialist care. Councillor Chris Read cited examples of residents in need, including individuals facing health challenges, housing issues, and financial difficulties, to illustrate the real-world impact of reduced funding on vulnerable populations.

Councillor Iain Cottingham provided detailed figures, explaining that the Council’s funding from central government was projected to decrease by £28 million over the next three years. This included a reduction in the retention of business rates from 30% to 13%, which would significantly impact the Council’s income. Councillors expressed concerns that the shift undermined the Council’s ability to deliver essential services and created a disincentive for economic growth in the district. 

Councillor Justin Pemberton expressed a sense of urgency and sorrow, stating that the funding settlement threatened the district’s ability to invest in its future and maintain its identity as a thriving community. Councillor Nigel Foot highlighted the potential widening of health disparities due to reduced funding, particularly in addressing pockets of deprivation and supporting vulnerable residents. Councillor Patrick Clark emphasised the challenges faced in Adult Social Care, noting the high costs of providing care in rural areas and the increasing demand for services as the population ages. 

The recommendations within the requisition called for a united effort to engage with the government and local MPs to advocate for a fairer funding settlement. Councillors stressed the importance of presenting a strong, collective voice to ensure the needs of West Berkshire residents were adequately represented.

The absence of the Conservative opposition group was a significant point of discussion during the meeting. Councillor Brooks and other councillors criticised the decision of the Conservative group to boycott the meeting, describing it as a dereliction of duty and a failure to represent their constituents. It was suggested that the absence of the opposition meant that residents in their wards were not being represented in the critical discussion. 

Councillor David Marsh and fellow Councillors of the Minority Group questioned the timing and purpose of the meeting, suggesting that earlier action might have been more effective. However, they also criticised the Conservative group for failing to engage in the discussion.

RESOLVED that: Council request that the Leader

·         Writes to the Secretary of State for Housing, Communities and Local Government (MHCLG), The Rt Hon Steve Reed OBE MP, to request that the Government urgently review the proposed funding model being applied to West Berkshire Council to address the significant and unfair consequences to this Council’s ability to deliver essential public services to our communities.

·         Writes to out two local MPs to ask that they support our efforts and urge MHCLG to address the negative impacts of the proposed settlement on West Berkshire Council, and request that this be reviewed as a matter of urgency.

·         Discusses this difficult situation with the Berkshire Unitary Authority Leaders and looks to develop a joint Berkshire wide response to this very distressing financial situation..