The government is proposing to redistribute the funding it gives to councils, giving more to those that ministers believe are in greatest need and less to those they think can manage with a smaller grant. No one could object to the principle of giving the most help to those who need it most, but I am concerned that the government is using a very blunt instrument for determining allocations and is underestimating the consequences for those councils that lose funding.
Wokingham already receives the lowest core revenue support from government of any English council with the same range of responsibilities. Now the government is proposing significantly to reduce that already low level of support. Over the next three years, Wokingham could lose around £50 million of government funding. Our core revenue support from government, which is about £21 million a year now, could be as little as £4.5 million by 2028-29.
If implemented, the reductions planned to begin next year would require the council to use almost all the additional council tax it raises to plug the gap created by the loss of government support. That would leave nowhere near enough left to deal with inflationary pressures and increased demand for services, both of which affect us every year.
Wokingham has a healthy level of reserves and a good record of financial resilience. The current administration has worked hard to ensure long-term financial viability. We have excellent officers, whose hard work and commitment to public service are the foundations of our success. We will rise to this challenge, as we have to others over the last three years – calmly and rationally. But many councils will struggle to survive if the government does not adjust its proposals. Even in well-managed Wokingham, we will face enormously difficult decisions if there is no change in government thinking.
While we must begin preparation for next year’s budget assuming that the government’s proposals are implemented, we are campaigning vigorously to persuade ministers to moderate the changes in the funding regime, to protect the many councils that will be put into financial distress by the redistribution of government support.
I have written to ministers to put the case for a 4% minimum guarantee, or floor, on councils’ total annual increase in their overall revenue (government revenue support, retained business rates, and council tax combined) to ensure no council is put under unsustainable financial pressure. Our MPs – Clive Jones for Wokingham and Yuan Yang for Woodley and Earley – have been lobbying for us, and we have been using all the local government networks with which we are involved to make common cause with other councils also set to lose out. I have also written to all the other councils we believe are similarly affected.
Our community partners are mobilizing to support our campaign, as they appreciate that a council stripped of funding is less able to help the borough to thrive.
This is where you can help. We need to show breadth and depth of community support for our campaign. If you are willing to give us your backing, you can record your support simply by pressing a link on the council’s email newsletter (Residents’ Round Up), or by going to the following link, which should be live by the time you read this:
https://www.wokingham.gov.uk/our-financial-situation.
Nearly 3,000 residents have already registered their support. If you could add your name to the growing list, it will help us fight for a fairer deal for Wokingham.
By Cllr Stephen Conway
