Sunak’s squeeze on local government funding set to continue

Horsham shoppers were surprised this week when Prime Minister Rishi Sunak appeared in Boots in Swan Walk. He was here to talk about shoplifting, but it was his remarks about local government finance that raise questions.

Sunak claimed that ‘on average councils will have about 7.5 per cent more money to spend this year than they had last year in cash terms’. But much of that will only come if councils increase their council tax by the maximum permitted, which is 4.99% in the case of West Sussex County Council.

Sunak is cheekily claiming credit for himself, when in fact it’s local residents who have to foot the bill.

Even his own party at WSCC doesn’t agree with him. In response to a Lib Dem opposition Motion in December, asking Council to lobby government for more funding, the Conservatives accepted there was a serious shortfall: ‘Councils have experienced a 27% real terms cut in core funding from central government since 2010. Meanwhile, cost and demand pressures will have added 29% to the cost of delivering council services between 2021/22 and 2024/25.’

They further agreed that: ‘Alongside other county councils, West Sussex County Council is in the invidious position of having to increase council tax by the maximum available during a cost of living crisis whilst also having to find savings from the services it offers to residents.’

Liberal Democrat spokesperson for Horsham District, John Milne commented:

“Sunak must be living in a parallel universe. A fifth of all councils have warned they’re at risk of bankruptcy over the next 15 months. That includes every type of council, run by every political party. Sunak simply can’t pass this off as a few bad apples.

“What’s more, Tory councils have been among the worst performers. Woking Council’s debt runs into the billions as a result of Tory recklessness, while Thurrock made a catastrophic investment into a solar energy company. By continuing to squeeze funding so hard, the government is simply kicking the can down the road and leaving it for someone else to pay the bill.

“Fortunately Horsham District Council is in a strong position and has implemented the lowest council tax rise in all of West Sussex. But other local councils including the county council remain under serious pressure.”