CORNWALL Council has said the funding it receives from the Government represents a real-terms cut despite claims that councils have increased “spending power”.

Julian German, deputy leader at County Hall, said that Government claims of a “real-terms increase” were based on an assumption that council tax would rise by 5%.

But the Independent councillor said that Cornwall Council was only raising council tax by 3.99% to try to reduce the impact on the purse strings of households in the Duchy.

He said: “The spending power that the Government talks about is a calculation which is based on an assumption that council tax will be 5% highers.

“We have been going out and about and talking to people about what they want and we are proposing to put up council tax by 3.99% because of the balance that we need to find in being able to provide services and the impact on residents and households having to pay more.”

Communities secretary James Brokenshire said the money paid to councils would rise from £45.1billion last year to £46.4bn in 2019/20. What he didn’t add was that his figures assume £27.9 billion of the total will come from council tax – money raised locally from local people.

Only £14.6 billion will come from the main government grant for local authorities – DOWN from £15.6 billion in 2018/19.

Cornwall has been told it will have “spending power” of £473.9 million in 2019/20, up £16.4m from the £457.5m it has for 2018/19. But that assumes local leaders will hike council tax enough to raise £301.4m in 2019/20.

That is up by £20.3m compared to the £281.1m raised in council tax for 2018/19. In other words – if council tax is taken out of the equation, Cornwall is facing another real-terms cut.

It comes on top of many years in which the council has borne the brunt

of the Conservatives’ austerity drive. As recently as 2010/11, Cornwall council’s “spending power” stood at £513.5m.

Council tax – that is to say, local taxpayers’ money – contributed just £239.2 million of the total, or 47 per cent. The rest came from central government.

In 2019/20, council tax will be responsible for 64 per cent of the cash Cornwall council has to spend. And overall – even including the planned council tax hikes – the council will still have 28 per cent less to spend than it had in 2010/11.

Cllr German said: “We have been trying to maintain services by doing some things differently, for example Visit Cornwall becoming a community interest company, GLL taking over leisure centres, delivering services so residents and businesses get the same benefits but without the council taxpayer having to pay for them.

“We have also looked at how to do things differently so that Cornwall Council doesn’t have to pay for them. Public toilets and other services that are now being delivered locally which are funded through taxation from town and parish councils or from raising funds a different way or through their own revenue such as car parks.

“We have also made massive efficiencies within the council from the obvious and mundane such as reducing printing and less mileage through having meetings via Skype, the things that people would expect us to do, and with major transformation projects to re-engineer the back office functions at the council.”

The funding settlement for 2019-20 marks the end of a four-year deal that the Government says has been accepted by 97 per cent of councils.

Mr Brokenshire said: “This year’s settlement paves the way for a fairer, more self-sufficient and resilient future for local government.

“That is why local authorities will have more control over the money they raise and a real-terms increase in their core spending power.

“The settlement also recognises the pressures councils face in meeting growing demand for services and rewards their impressive efforts to drive efficiencies and rebuild our economy.”

Local government chiefs say services have suffered because of cuts – and called on the Government to address the shortfall in the the upcoming spending review.

That will determine how well councils – as well as government departments – are funded in the next few years.

Cllr German said he hoped Cornwall MPs would be supportive of the council’s campaign to get fairer funding for Cornwall and would also help represent Cornwall when the comprehensive funding review takes place later this year.

He said: “We want to work together. Hopefully the spending review will not just be a one-year review and we get a four-year settlement so we can plan for the future.

“That is where we will see the MPs, ourselves and residents supporting the fairer funding campaign.”

Cllr German also pointed to the fact that the Conservative chairman of the Local Government Association (LGA), Lord Porter, had also recognised that the finances for local councils will be “challenging”.

He said: “If the Conservative chair of the LGA is saying that that puts it better than I can in the scale of the challenge we face. We are not just saying woe is us, it’s really difficult, Conservatives are saying it about their own government.”

Lord Porter said: “The money local government has to provide vital services is running out fast and huge uncertainty remains about how councils will pay for

services into the next decade and beyond.

“If the Government fails to adequately fund local government then it will be our local communities and economies who will suffer the consequences.

“It will be those who rely on vital adult social care to live independent lives, rural bus routes to get out and about, council tax support to ease financial burdens and those who value clean streets, green spaces and roads fit for the purpose.

“The spending review will be make or break for vital local services and securing the financial sustainability of councils must be the top priority.”

Cornwall Council’s Cabinet will discuss its budget for 2019/20 and the proposed 3.99% council tax increase when it meets on Wednesday (Feb 13) with a final decision set to be made by full council when it meets later this month.