Devon County Council warns of growing reliance on council tax in funding settlement

Devon County Council has raised concerns that the Government’s final local government funding settlement, announced yesterday, continues a long-term shift away from national funding and increases reliance on council tax to pay for essential local services.

The council says that while Devon’s Core Spending Power rises over the period covered by the settlement, most of the increase is based on assumed council tax rises rather than additional government grant. As a result, local taxpayers are being expected to fund the ongoing cost of maintaining services.

According to the council, its dependence on council tax to support frontline services has grown steadily since 2015, as central government funding has not kept pace with rising demand and increasing costs. The pressure is particularly pronounced for rural authorities such as Devon, where delivering services across a large geographic area brings additional expense.

The council continues to face what it describes as significant structural challenges, particularly in adult social care, support for children and young people with special educational needs and disabilities, and the cost of providing services across a large and predominantly rural county.

Under the settlement, councils are allowed to increase council tax by up to 4.99 per cent each year, including the adult social care precept. Any rise above this level would require a local referendum.

The council has also highlighted concerns about the timing of the settlement, noting that its late publication has added uncertainty to the budget-setting process, with councils required to finalise their budgets at a very late stage.

Councillor James Buczkowski, Cabinet Member for Finance, said:

“This settlement leans heavily on council tax, particularly for counties like Devon.

“While some reforms are welcome, the funding still does not fully reflect the real cost of delivering vital frontline services across a rural area.

“We will continue to manage our finances carefully, but we will also keep pressing Government to properly fund local services rather than shifting more of the burden onto local taxpayers.”

Devon County Council’s Cabinet is due to consider the proposed budget at its meeting on Tuesday 17 February, with Full Council scheduled to formally approve the budget on Tuesday 24 February.