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James Robinson

Northumberland County Council's budget uncertainty remains despite Jeremy Hunt's Autumn Statement

Leading Northumberland councillors are still waiting to find out how much money they will receive from central Government, despite Jeremy Hunt's Autumn Statement.

At Thursday's meeting of the council's cabinet, members were discussing the council's budget for the coming financial year, which is expected to be presented in early 2023.

However, uncertainty remains over the local government settlement, provided by central Government and not usually revealed until late December. The settlement is particularly important this year due to pressure on council finances caused by inflation.

Read more: Furious councillor claims football coaches picked up 390 bags of dog poo from youngsters' pitch

The chancellor's announcement did contain some relevant information for councils, such as a rise in the ceiling in which authorities can raise council tax without holding a referendum.

Top officers and councillors have repeatedly reminded the public that Northumberland remains in a strong financial position despite the additional pressures it is currently facing.

Speaking at Thursday's meeting, the council's interim chief financial officer, Jan Willis, said: "We won't know our full funding position until the final local government settlement in January.

"At this stage, we don't have enough information."

The council's deputy leader Coun Richard Wearmouth added: "Despite the Chancellor's announcement there is still a lot of uncertainty regarding the local government settlement.

"What we do know is we have the confirmation of a number of things such as the precept for adult social care to go up, for the council tax ceiling to go up, as well as information relevant to our budget setting, in respect of the rise in the living wage.

"We saw information in terms of increases in the school budget and the household support budget."

It comes after the Local Government Association (LGA) praised the Chancellor's statement - but warned that increasing council tax and business rates was not the answer.

Coun James Jamieson, Chairman of the LGA, said: "It is good that the Chancellor has used the Autumn Statement to act on the LGA’s call to save local services from spiralling inflation, demand, and cost pressures.

“While the financial outlook for councils is better than we feared next year, councils recognise it will be residents and businesses who will be asked to pay more. We have been clear that council tax has never been the solution to meeting the long-term pressures facing services.

“Financial turbulence is as damaging to local government as it is for our businesses and financial markets and all councils and vital services, such as social care, planning, waste and recycling collection and leisure centres, continue to face an uncertain future.

"Councils want to work with central Government to develop a long-term strategy to deliver critical local services and growth more effectively."

At the same meeting, council leader Glen Sanderson pledged to "look very hard" to avoid increasing council tax by five per cent, as allowed under the new rules.

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