10/07/2017
Watch a video about our finances: https://youtu.be/vDBVVnMXGUw
A proposal to create one single new council is being put to all of the councillors from South Hams District and West Devon Borough Councils later this month.
Like many other local authorities across the country, South Hams and West Devon have been facing huge financial pressures due to the phasing out of the money they used to get from central government.
The reduction in government funding (revenue support grant and the councils share of business rates ) has been dramatically reduced by £4 million in South Hams and £3 million in West Devon since 2009/2010 . However through sharing services since 2007, the councils are currently saving £6 million a year. Despite this the councils are still facing a combined budget gap of £1.9 million each year after 2020, due to further government cuts.
Local councils are not allowed to set a negative budget, so South Hams and West Devon will have to find ways of closing that gap. If either of them cannot set a balanced budget in 2020, there would be severe financial consequences for both authorities because they are so intertwined.
Cllr John Tucker, Leader of South Hams District Council said: “We know that there are some key concerns that the public will have, and in the proposal you will see how we plan to address those concerns. The biggest one for our residents in South Hams is likely to be the difference between our council tax rate and West Devon’s, which is approximately £63 a year on a band D property.
“If the proposal goes ahead we would need to bring the two council tax charges to the same level and this may mean that South Hams residents will see an increase over the next few years, until they are at the same level. In the proposal we have laid out some different options for how this could be dealt with.
“If we do not do this, there is a risk that South Hams will run out of money after 2020, due to the lack of funding, we therefore want to make sure we consider all options to continue funding those services we know are vital to our local communities.
Cllr Tucker knows that these are very difficult decisions to make, but he says “both councils must address their financial positions so as to protect front line services”.
South Hams is encouraging anyone who is interested in the progress of the proposal to follow them on social media and sign up for their newsletters.
Notes to editor
In the proposal, which is one of a number of measures the councils are considering to close the funding gap, South Hams predict that the creation of a single council could save up to £0.5 m every year. This is excluding any potential income resulting from an increase in Council Tax. These savings would not be made through cuts to services, but because a single council will cost less to operate.
Over the last few months a working group of councillors, from both authorities, with representatives from across the political parties in South Hams and West Devon, have been exploring if the creation of one new council would be possible.
The detail of their work has now been made public in the proposal which will go to both councils, firstly West Devon Hub on 18th July and then South Hams Executive on 20th July. Potentially followed the next week by discussion at both full councils on 25th and 27th July. The accompanying report will be asking councillors to approve a public consultation.
Papers are now live on West Devon’s website before their Hub meeting on 18th July: http://mg.swdevon.gov.uk/ieListDocuments.aspx?CId=221&MId=305&Ver=4
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