There are fresh fears over the financial futures of Norfolk councils, with leaders warning extra government cash will not go far enough to tackle rising costs and head off potential cuts.

Local authorities are struggling with major shortfalls in their finances - and say the 6.5pc increase in funding announced by local government secretary Michael Gove will still leave them short.

Under the provisional settlement - the amount the government gives councils each year - Norfolk County Council will get almost £217m, £11m more than last year.

But deputy leader Andrew Jamieson had already warned all services the authority is not legally bound to provide to the public could be at risk.

Council tax bills for people across the county look set to go up as County Hall wrestles with the need to make savings, despite demand for services increasing.

Eastern Daily Press: Norfolk County Council deputy leader Andrew JamiesonNorfolk County Council deputy leader Andrew Jamieson (Image: Norfolk County Council)

It comes as Birmingham City Council and Nottingham City Council are among authorities which have declared themselves essentially bankrupt - and there are fears more could follow.

The spate of crises facing councils has prompted concern about provision of public services and County Hall leaders warned the government's extra cash will not address all the pressures.

Eastern Daily Press: Norfolk County Council's Martineau Lane headquartersNorfolk County Council's Martineau Lane headquarters

A county spokesman said: “We have been very clear that we face sustained budget pressures and require sustainable, fair funding to help to address them.

"Any increase in funding is welcome but 6.5pc will not be sufficient to address our increased costs.

"We will look at the detail and present a fuller update report to cabinet, in January."

READ MORE: Norfolk County Council plea over rising school transport costs

Leaders at the Conservative-controlled council need to plug a £46.2m hole in the authority's budget for 2023/24 and £26.5m of potential cuts and savings towards that have been identified.

Budgets came under pressure after Conservative-imposed austerity after the financial crash.

Inflation and the war in Ukraine have increased costs, with Norfolk experiencing spiralling demand for adult social care and children's services.

Eastern Daily Press: Local government secretary Michael GoveLocal government secretary Michael Gove

The council's leader Kay Mason Billig was among leaders of all political hues who wrote to Mr Gove earlier this month, expressing disappointment at a lack of help in the government's autumn statement.

Eastern Daily Press: Norfolk County Council leader Kay Mason BilligNorfolk County Council leader Kay Mason Billig (Image: Norfolk County Council)

The letter asked Mr Gove to make more money available in this month's financial settlement, warning failure to do so would lead to "painful reductions" to frontline services and council tax hikes.

But Mr Gove said: "These proposals will provide councils with the support they need. It ensures stability, delivers additional resources for social care, and maintains balance on council tax."

Steve Morphew, leader of the Labour group at County Hall, said: "The cost pressures on council funding far outweigh the funding being spun by the government.

"Most of the so-called increase in spending power relies on councils hiking council tax by the maximum possible.

"It's deplorable the government pretends this is anything other than another turn of the screw on council services.

"It is increasingly a choice between a financial crisis or even deeper cuts in services that will affect the quality of life for many people."

 

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If councils had been hoping Michael Gove was about to give them an early Christmas present, then they are likely to have gone away muttering 'bah humbug!'

The local government secretary announced there will be extra money for local councils when he revealed the finance settlement they can expect next year.

The problem is that the 6.5pc increase in funding does not go far enough. The extra money is welcome, but does not keep pace with the increased costs and soaring demand which Norfolk County Council is wrestling to cope with.

Leaders at County Hall had been disappointed that there was little in the autumn statement to help councils like Norfolk.

Council leader Kay Mason Billig, who was among more than a dozen council leaders to write to Mr Gove asking for a better deal in the local government settlement.

She had previously said Mr Gove had promised councils a Christmas present, only for them to find that it was an empty box when they unwrapped it.

Yesterday's announcement at least contained something - but not enough.

The council needs to plug a £46.2m gap in its budget. While it has identified about £26m of those savings, more need to be found before the budget setting early next year.

Andrew Jamieson, cabinet member for finance, has warned the council could have to consider what it spends on services it is not legally obliged to provide - and what levels it spends on some of those it does have to provide.

At the same time, the share of the council tax we pay to the council goes up year after year.

Where is the leadership from central government? We have already seen some councils effectively declare bankruptcy and there are fears more could follow.

Councils exist to provide services for local people. But to do that, they need to be better funded - and to have longer-term certainty over what money will be available to them.