Derbyshire’s Key Budget Concerns

Both Derby City Council and Derbyshire County Council have indicated they face “difficult decisions” due to their financial situations, mirroring warnings from the Westminster government. Senior officials from these councils will be monitoring the upcoming Budget for measures addressing several highly strained sectors. The following outlines six significant concerns. Derbyshire County Council has been advocating for the government to establish a Landslips Fund, which would enable the authority to access additional finances to repair the 200 landslips currently present in Derbyshire. Barry Lewis, the Conservative leader of the council, stated: “Our highways budget from the government for road maintenance is around £27m a year.” He added that “With some landslips costing more than £1m to fix – the Snake Pass being a good example – we just don’t have the money we need to keep these roads open and are strongly calling for extra funds in this area, to include more money for general highways maintenance.” South Derbyshire is particularly concerned about the status of the long-anticipated A38 improvement works. This project is included in the transport secretary’s infrastructure review, which is expected to publish its findings concurrently with the Budget, having informed the chancellor’s financial allocations. Nevertheless, even if the specific outcome is not announced on Budget day, indications of future plans might be inferred from the nature of the transport funding agreement provided to the East Midlands’ regional mayor. The new government has not yet confirmed the £1.5 billion in transport funding that was previously agreed for the East Midlands Combined Authority by the preceding administration. A senior representative from the East Midlands Combined Authority informed the BBC that “That does make people nervous.” They added, “The government could say, we don’t need to fund these specific projects [like the A38] and the £1.5bn… using that as an excuse to cut funding.” Numerous leaders in Derbyshire have communicated to the BBC their desire for a stable, three-year funding agreement to enhance both planning capabilities and financial predictability. A significant sector that some believe would especially gain from such a settlement is the capacity to plan for increased housing development, particularly the construction of additional affordable homes. Specifically, the Labour-controlled Amber Valley Borough Council is advocating for this, with its leader stating it would assist them in achieving “a key objective to deliver council-owned housing at affordable rents.” The council is presently in the process of making its initial affordable homes available for local occupation, a first in several decades. The continuation of grant funding for vital services such as social care is a potentially critical issue. Grants constitute one of the three primary sources of local government funding; however, their temporary nature presents a challenge for numerous councils. Derbyshire leader Lewis reported that demand for adult care is growing “exponentially,” and the discontinuation of one-off grant funding is contributing to further cost increases. Children’s services in Derby, in particular, rely heavily on grant funding. Adult care also receives supplementary grant funding, and the council remains uncertain about how this will evolve in the future. Considering the substantial strain social care currently places on both the city and county councils, relying solely on temporary funding assurances will complicate their efforts to maintain financial stability. Town centre regeneration served as a primary focus for the previous government’s levelling up funding, and the majority of projects in the region that successfully secured bids for this funding are largely confirmed. Erewash, however, awaits news regarding the £5 million designated for cultural spending, which was pledged by former chancellor Jeremy Hunt during the Budget in March of this year. James Dawson, the borough council’s Labour leader, commented at the time that the funds were “sorely needed.” Derby Museums have also co-signed a letter from Civic Museums, advocating for an urgent financial infusion to ensure their continued operation. They are seeking £400,000 from the chancellor to achieve financial equilibrium next year. The city council recently identified the provision of temporary accommodation for homeless families as a “significant new pressure.” The BBC recently disclosed that the city council’s annual expenses for accommodating families in private temporary lodgings, such as hotels and Airbnbs, have recently escalated to nearly £5 million. A primary factor contributing to the escalating costs faced by councils in this area is the government’s housing subsidy, which prevents authorities from reclaiming expenses when utilizing unregistered housing providers. This refers to the funds provided by the government to local authorities as a subsidy for managing housing benefits. However, with demand rapidly increasing, councils frequently find themselves compelled to utilize these providers. Council leaders indicate they would support the elimination of the subsidy cap, which would guarantee that councils receive full funding to cover these expenses. For updates, follow BBC Derby on Facebook, X, or Instagram. Story submissions can be sent to eastmidsnews@bbc.co.uk or via WhatsApp at 0808 100 2210. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our external linking policy is available.