Council leaders criticise government after last-minute ‘financial shortfall’

A last-minute £6.2m shortfall in government funding has left Cornwall Council’s finances in a “very difficult position” its leaders have said.
The extraordinary meeting of the committee met last week met with a single item on the agenda: the council’s Business and Financial Plan for 2025-30 – Capital and Investment Strategy.
Cllr David Harris, deputy leader of the council and portfolio holder for resources, explained that the report addressed the management of the council’s £2.9bn worth of physical assets, and includes looking at ways of reducing the estate to a more manageable level and how to reduce borrowing.
He also highlighted the additional challenge posed by the shortfall in funding, with expected government grants £5.2m lower than predicted, and the £1m impact of increased employer National Insurance costs needing to be met despite the government’s promise that the council’s cost of increased NI contributions would be fully compensated.
Cllr Linda Taylor, leader of Cornwall Council said: “We all like to have time to prepare for these vital discussions, and I of course recognise that it is not acceptable for those wishing to study these reports closely to not receive them until the last minute.
“However, there are mitigating circumstances here, as we have never been faced with a situation before where the Government has, without warning, left us with an unexpected £5.2m hole in our budget.
“We all know how difficult the budget process has been, and so having to find significant further savings has put us in a very difficult situation.
“Disappointingly, it is becoming clear that Cornwall is not on Westminster’s priority list, and we will clearly have to fight harder than ever before for every penny going forwards.
“We have raised our concerns over this with Westminster, but sadly I do not hold much hope that they will listen.
“My thanks go to everyone who has worked so hard over the past couple of weeks to address these last-minute issues.”