Lincolnshire County Council says it is extremely concerned about the additional financial pressure caused by the Government’s announcement of the removal of the £9m Rural Services Grant.
This reduction in funding comes on top of rising costs associated with increased demand for adult social care, children’s services, and home-to-school transport.
Additionally, the recent increase in national insurance contributions is expected to raise costs by up to a further £15m, while the rise in the national living wage will cost at least an additional £5m.
The council estimates that even before these new pressures, Lincolnshire is being short-changed by more than £100m a year due to the Government’s funding formula.
Cllr Martin Hill OBE, leader of Lincolnshire County Council, said:
“While some additional money has been promised, there is also very significant cause for concern that it will not be enough to cover these huge extra costs.
“We are particularly disappointed to see that the Rural Services Delivery Grant has been scrapped. This was introduced in recognition of the additional challenges rural authorities face in delivering services, and its removal seems like a backward step.
“Instead, the Government has said it will focus on ‘deprivation’ in reforming the funding system. There is currently no clarity as to what this means, and we have a real fear that money will be taken from rural communities and given to urban areas – making our unfair deal even worse.
“We need assurances from the Government that we will be compensated for these additional costs in this year’s settlement. At present, all that appears certain is the Government’s expectation of a five per cent increase in council tax.”
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