Frodsham: Cheshire West Leader has responded to the budget

By Alex Greensmith

1st Nov 2021 | Local News

Cllr Gittins said the full impact of Rishi Sunak's budget announcement on CWAC's finances was not yet clear..
Cllr Gittins said the full impact of Rishi Sunak's budget announcement on CWAC's finances was not yet clear..

FRODSHAM: The leader of Cheshire West and Chester Council has issued a cautious welcome to the Chancellor's budget, but warned 'the devil is in the detail'.

Rishi Sunak delivered his autumn budget and spending review earlier this afternoon (Wednesday) where he announced £4.8 billion for local government, which he said was "the largest increase in core funding for over a decade".

The government has also announced a three-year settlement for local authorities, having previously only produced settlements which covered 12 month periods, a move which has also been welcomed by council chiefs.

Responding to the Chancellor's announcement, Cllr Louise Gittins, leader of Cheshire West and Chester Council, said: "The three year settlement does help us because at least we do know where we're going over the next few years.

"I'm not going to say that I'm not pleased because I am pleased that we are going to be getting some more, but the devil is in the detail.

"We have to put this into context because since 2010 we've had £440m in real terms taken from our budget.

"This is going in the right direction but I think we'll need  to understand what that actually means, and whether that means Council Tax increases."

As well as core funding, council coffers are also hugely impacted by Council Tax and Business Rates.

In the budget announced today, councils will still be able to increase Council Tax by up to 2%, with the Chancellor also granting permission for local authorities with social care responsibilities to increase their adult social care precept by up to 1% .

He also said there will be a new 50% business rates discount in the retail, hospitality, and leisure sectors for the next year.

Cllr Gittins said: "On the surface, it sounds quite good but we don't know how that will impact (on the council), as we get some of that Business Rate money back from the government, but it will help support our businesses, so that's good news."

Cllr Gittins said the council will not receive the full details of its funding until shortly before Christmas.

She added: "I am very, very cautious. You tend to find that it sounds good but when you dig into it, it tends to be things which have been announced before.

"The finances of local government is still not in a really good place, particularly around adult social care. We need to understand that.

"But on the surface, any money is welcome."

     

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