Cornwall Council Faces Tough Choices: Budget to Protect Services Amid £6M Shortfall

Government Cuts Leave Cornwall £6M Short

Cornwall Council’s Cabinet is set to consider a draft budget next week, aimed at protecting frontline services despite a significant shortfall in expected government funding. The financial settlement from Westminster has been worse than anticipated, with the removal of the Rural Services Delivery Grant, leaving the council scrambling to reassess its savings plans.

The funding gap stands at around £6 million lower than originally expected, prompting the council to make difficult financial decisions. According to David Harris, deputy leader and portfolio holder for resources, the final settlement confirmed Cornwall was £5.1 million short of what was expected.

He said: “This really has been the most difficult budget to put together. It is clear that Government has not listened.”

The removal of the Rural Services Grant has sparked frustration, with David adding: “There is absolutely no recognition that our rurality has been taken into account. In fact, you might be forgiven for thinking that they are actively favouring urban over rural areas.”

To make matters worse, Cornwall has also lost out on £500,000 in promised compensation following changes to National Insurance contributions for businesses.

How Cornwall Council Plans to Plug the Gap

Despite these financial pressures, the council has managed to avoid further cuts to services by redistributing non-ringfenced grant funding and increasing some fees and charges.

David said: “These are difficult choices we are having to make, but I am confident we are delivering a budget that will protect our frontline services and continue to invest in Cornwall’s future.”

The budget includes:

• A 4.99% increase in Council Tax, including a 2% levy for adult social care
• £22 million more in net spending on adult and children’s care
• £173 million to create new school places and repair school buildings
• Investment in new appliances for Cornwall Fire and Rescue
• Funding for modern, low-carbon technology
• £1.5 billion for projects supporting economic growth, transport, and housing

David also called for an end to repeated funding cuts, stating: “I will continue to urge the Government to end this cycle of endless cuts and savings, and to deliver fairer funding for local government as they have promised to do.”

Public Invited to Watch the Budget Debate

The budget will be discussed at County Hall (Lys Kernow) in Truro on Wednesday in the Trelawny Room. The meeting starts at 10am, and members of the public are welcome to attend in person or watch via the council’s webcast service.

For those wanting to review the full agenda papers, they can be accessed here.