The first ever budget for a new unitary council that is less than a month away from its start date has been approved.
The historic financial plan for the Westmorland and Furness authority was the subject of lively discussion at Kendal county hall today, Tuesday, March 7.
Westmorland and Furness Council is to begin operating on April 1 and will take on the work currently performed by Cumbria County Council, Barrow Borough Council, South Lakeland District Council and Eden District Council.
The budget includes an average 4.99 per cent hike in council tax rates across the area and a plan for a 100 per cent council tax increase on Westmorland and Furness’s second homes, to be introduced in 2024.
The planned capital spend over the next five years is £253m and includes renovation of the lido and promenade in Grange, town hall redevelopment in Penrith, flood defence work in Kendal and phase one of a plan to transform Ulverston Leisure Centre.
Cllr Andrew Jarvis, cabinet member for finance on the shadow authority that is overseeing preparation for the new council, outlined the pressures facing the new budget at Tuesday’s meeting.
“As we are all too aware, we are facing the highest inflation the country has seen for 40 years,” said Cllr Jarvis, who represents the Liberal Democrats.
“At the same time, we must recognise the cost of living crisis facing our residents. It is also clear that funding from central government falls well below the level needed.”
He described the short-term financial outlook for the new council as ‘challenging’ and said the budget proposed left a deficit of £26m this year.
“Consequently, we have requested government for additional support in the form of a capitalisation direction,” he said.
“One way to think of this is we have requested from government an overdraft facility to be used if required.”
Cllr Derek Brook, leader of the Labour group on the shadow council, said: “Thank you to the Government for forcing us to go through this [restructure] very quickly, insanely quickly, and not giving us any money to do it.”
Cllr Hilary Carrick, leader of the Conservative group on the shadow authority, said the ‘hard-pressed taxpayers’ of Westmorland and Furness might view local government reorganisation as ‘an expensive white elephant’.
“This budget offers very little clarity about what residents can expect to see this year or for years to come,” she said.
Fellow Conservative councillor Philip Dew was also critical, describing the budget as a confection and saying: “The reason why we haven’t been given details is because those details wouldn’t have borne scrutiny.”
Labour councillor Tony Callister said it was ‘shockingly embarrassing’ that Cllr Jarvis was suggesting using an overdraft facility but laid the blame at the door of the Government.
“It [local government reorganisation] was a Conservative idea,” he said. “We have got Cllr Dew trying to lecture us on trying to run a budget.
“The Conservative Government have practically put this country into bankruptcy.”
Fifty councillors voted in favour of the budget, 11 were against, and there were three apologies for absence.
