Devon County Council

devon.gov.uk

From Peter Doyle, Exeter 380101, January 18, 2007

THERE was disappointment for Devon today when the Government confirmed the new grant settlement for 2007/8 without any increase for road maintenance.

It means Devon will receive £49 per person LESS grant than the average for English counties - a massive £36 million LESS funding for public services across the county.

Devon is set to receive a Formula Grant -- the Revenue Support Grant plus the county's share of the Business Rate -- of £122.98 million, an increase of £4.75 million or 4 per cent - just below the Retail Price Index of 4.4 per cent.

But financial forecasts indicate that road maintenance costs will rise by 7 per cent in 2007/8, largely driven by oil, steel and aggregate prices, while social care costs will rise by nearly 5 per cent reflecting the increasing numbers of elderly people requiring support.

The Formula Grant is of particular concern because it has to help pay for all the non-schools services the County Council provides to people in Devon such as social care, roads and public transport, waste disposal, street lighting and libraries.

The Dedicated Schools Grant for Devon, which is ring-fenced by the Government for spending on schools only, increases overall by just under £18.2m, or 5.7%, to £335.8 million.

Leader of Devon County Council, Brian Greenslade, said: "Devon County Council is responsible for the biggest road network in the country at nearly 8,000 miles long. It beggars belief that the Government has not given any increase for road maintenance. When added to price increases in the previous two years, the gap between Government provision and council budgets has widened significantly."

He added: "How the Government chooses to share out grants is vital to reducing the Council Tax burden on Devon people, but this grant settlement perpetuates the injustice in the current system. If Devon received just the average grant for English counties it would be equivalent to cutting average Council Tax bills in the county by over £130.

"Devon is also trying to meet the increasing social care needs of older people. This is a national issue, but it is one which is felt most strongly in Devon where we have a rising population of elderly residents.

"Add to that rising costs for waste management and it is clear that the County Council faces some very difficult decisions over the next few weeks of the budget-setting process.

"Funding for schools is of course ring-fenced and cannot be spent on other services, but that's not the real issue. The real problem is that Devon continues to receive unfair funding overall because the Government wrongly assumes that high house prices mean that Devon is a wealthy county. In fact, nothing could be further from the truth, average wages in Devon are low compared to the rest of the country.

"That's why Devon County Council is urging the Government to reform the way local government is funded so that Devon tax-payers finally get a fair deal. "

NOTES TO NEWS EDITORS:

The Government has warned that Councils are likely to be capped if Council Tax increases exceed 5% for 2007-08.

The County Council's Executive will meet on February 6 to propose a new budget for Devon for 2007/8. The full Council budget meeting when final decisions are taken will be held on February 15. Both these meetings will be broadcast live on the Internet.

• Leader of the Council - Cllr Brian Greenslade
• Chief Executive -- Phil Norrey

• Budget £800 million
• Key investments include:
• Schools £349 million
• Adult and Community Services £164 million
• Environment, Economy and Culture £106 million
• Children and Young People £101 million

• Other important County Council support includes:
• Building programme: £185 million for new schools, roads, care services, libraries and recycling centres

• Political make-up:
• County Council seats: 62
• 33 Liberal Democrat
• 23 Conservative
• 4 Labour
• 2 Independent
• Next County Council elections: May 7, 2009

• Key stats:
• Population: 741,000
• Schools: 365
• Pupils: 96,200
• Children looked after: 584
• Adults helped to live at home: 17,622
• Residential and nursing care: 4,212 adults
• Libraries and Mobile Libraries: 61
• Roads: 12,831 kms (7,973 miles)
• Bridges: 3,500
• Public Rights of Way: 4,960 kms (3,200 miles)
• Streetlights: 71,000
• Illuminated road signs: 10,917
• Recycling Centres: 20
• Recycling rate: 49.21%

Figures may be subject to change

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