“IT’S NOT A CHALLENGE – IT’S A CRISIS”
That’s how a member of the Council’s ruling Cabinet described Surrey County Council’s financial position at a recent public meeting – responding to the forecast £22 million (down to ~£15 million at present) overspend in the current year, and the funding chasm facing the council next year.
A year ago we warned of significant risks to services because of 40% cuts in government grants to local councils. We highlighted social care for the elderly, new school places, youth services, bus services, children’s centres, community recycling centres, and road repairs as being possible areas for cuts.
So far we have only seen cuts in bus services, street lights being turned off at night and new charges for non-household waste (such as DIY waste and old tyres) and reduced opening hours at the local tip.
The cuts we warned about were deferred because the government awarded the council some one-off “transition” funding, and allowed the County to put up council tax by 4%, rather than capping it at 2% as in prior years, with the extra 2% being earmarked for adult social care. This allowed the council to set a balanced budget, whilst looking for further savings and efficiencies. However, these have not been found and the continuous pressure of social care demand – about 60% of the total council budget – have resulted in this year’s £22 million deficit.
The funding problem with social care has been in the news recently – particularly the knock-on impact on the NHS. Social care can help keep people out of hospital and also look after them when they come out, avoiding “bed blocking”. The number of elderly, particularly those over 85, and those with alzheimers is outpacing funding, and costs are due to jump with the upcoming increases in the minimum wage. A particular issue in Surrey is the very large number of learning disabled who were previously looked after in NHS long-stay mental hospitals, but now out in the community paid for by the council. Because of the large number in our area – eg coming out of the old Epsom mental health cluster – Surrey is faced by double the expense of any other council in England..
The Government grant to local government in Surrey will be dropping to zero over the next two years and not only that – in fact in 2019/20 it will be a negative £17 million. That’s right Surrey will have to raise £17 million (an extra 3% on council tax) in order to hand it over to government.
Surrey is hit more than any other county because the government has failed to review the grant formula despite being in power for seven years. It fails to recognise changing needs – why else is band D council tax in Wandsworth less than £700 and in Tattenhams £1,700?
More Cash Please – Surrey MP and Chancellor of the Exchequer, Philip Hammond being lobbied at County Hall by members of Surrey’s Cabinet.
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