'More uncertainty than ever' around council funding in Cambridgeshire

Entrance to South Cambridgeshire District Council's offices.
-Credit: (Image: LDRS - CambridgeshireLive)


There is “more uncertainty than ever” about council funding South Cambridgeshire District Council has said, as its leadership said it is waiting for the government to "get its act together". Current forecasts suggest the authority is facing a £2.973million funding gap between 2025/26 and 2029/30.

However, the lead cabinet member for resources, Councillor John Williams (Liberal Democrat) said the authority was in a “difficult position” not knowing what the new government was planning for council finances. A report presented to the district council’s cabinet this week (September 24) highlighted some of the policy areas included in the Labour election manifesto, including multi-year funding settlements for councils, a fair funding review, and a review of council tax.

However, the report said without a detailed policy framework, the authority did not know what changes would be introduced and could not incorporate them in the district council plans at this stage. Cllr Williams said: “With the new government we cannot be certain as to what the settlement for next year will be and what the intention to have a three year programme will mean for the Medium Term Financial Strategy (MTFS), at this stage we just do not know.

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“We won’t really be able to see the true picture until later this year, hopefully in November, when we have all the facts from the government going forward. In the current circumstances, we have made a big effort to improve productivity and find savings.

“I’m pleased that this time last year predicted a £6.5million overspend by the end of the five year period, now we are looking at just under £3million, effectively halving that. This is mainly through the transformation project, but also through the four day week.

“If things do not change and our assumptions are correct, that is the new outturn, but as I say there are certainly going to be changes, the government indicated local government finance is going to change, so we have to wait for that information until we can give a true MTFS outturn. We are in a difficult position at the moment not knowing exactly what the government has got planned for us in the future.”

Councillor John Batchelor (Liberal Democrat) said the district council was facing a ‘situation of unknowns’ and would have to “wait until the government gets its act together to be certain of where we are”. Councillor Heather Williams (Conservative), leader of the opposition at the district council, questioned Cllr John William’s reference to the four day week trial saving the authority money.

She said previous reports highlighted that any money spent on agency staff was an overspend, so any money saved from requiring fewer agency staff would not be a saving in the district council’s budget. Cllr Williams also highlighted that the four day week trial for the waste crews had required additional spending. She asked for clarity on what the savings referred to actually were.

Cllr John Williams said the trial had reduced the number of hard to recruit posts “by half”, which he said had saved the district council money. He also said the trial had led to “productivity improvement and savings” in the budget. Councillor Bridget Smith (Liberal Democrat), leader of the district council, said reducing the amount the authority was spending on agency staff was only “one element” of the trial.

She said that keeping staff at the authority meant it was saving money on having to advertise the jobs and recruit new people. Cllr Heather Williams suggested the restructure and savings could have been done without the four day week trial. However, Cllr Smith said this was not the case.