Councillors from Waverley’s cross-party administration have written to the Secretary of State for Levelling Up, Housing and Communities, the Rt Hon Michael Gove MP, ahead of the local government finance settlement with a number of suggestions they believe are necessary to make funding for councils sustainable and fair. The letter was written by Councillor Paul Follows, Leader of Waverley Borough Council and signed by leaders of all of the political groups represented on the council’s multi-party executive.
The councillors stress that the Government must ensure that the council’s income from grants at least matches current levels, and that it should compensate the council for the full cost of the Health and Social Care Levy, which comes into effect next April.
The letter also expresses surprise that the Government’s Business Rates Review did not conclude that more radical reform was required, and argues that the system remains undemocratic, unfair and unfit to enable councils to sufficiently invest in their local economies and communities.
Waverley’s income from fees and charges remains 35% lower than pre-pandemic levels. The councillors therefore urge the Government to continue with the support funding, or to allow councils to set planning fees at a level that would cover their costs. Planning fees would need to increase on average by at least 150%, they argue, to ensure that Council Taxpayers do not subsidise those seeking to develop their property.
Finally, the letter calls on the Government to financially support the work to make council housing more energy efficient. The council lacks the resources to make the necessary improvements to its 5000+ homes that are required to meet its target of becoming a carbon net-zero borough by 2030.
Councillor Mark Merryweather, Waverley Borough Council Portfolio Holder for Finance, Assets & Commercial Services, said:
“The current local government finance system, with a settlement announced at the end of each year, simply doesn’t give us the certainty and stability we need to properly plan for and invest in the services our communities need. We want to see an inflation-adjusted, multi-year settlement that protects our funding at least at current levels.
“The Government’s Business Rates Review was also a great disappointment – the whole system needs to be completely overhauled. How is it fair that Waverley's businesses pay £38m each year, and yet we only get to keep £1.8m to fund services and invest in our local economy? It is also extremely unfair to businesses. We need a solution that puts an end to our local businesses struggling to pay Business Rates, while they are being undercut by global corporations that pay very little tax of any kind.
“Even before the pandemic, local government finances were in a precarious state, following a decade of cuts to funding from Government. We now need a settlement that will enable us to get back on a stable financial footing and continue to give our communities the services and support they deserve.”
The full text of the letter can be viewed here.