In a recent full council meeting held at the Devon County Council’s headquarters in Exeter, council members engaged in a contentious debate regarding the allocation of the county’s budget for the upcoming financial year, set to commence in April. The discussions culminated in the decision to raise council tax by 4.99%, the maximum allowable increase, which translates to an average rise of £85.59 or £1.64 per week for residents. This means that the total payment for an average Band D household to the county council will amount to £1,801.26, including contributions to district councils, fire, and police services.

The ruling Conservative party acknowledged the pressures on the county’s finances, citing a decline in government grant funding as a significant factor contributing to the budgetary constraints. Notably, Devon County Council suffered the loss of a £10 million central government grant in December, which had a detrimental impact on its revenue. In response to financial challenges, the council will also engage in borrowing; it plans to raise an extra £9 million for capital spending and convert over £35 million from reserves into external borrowing. This marks a notable shift, as the council has not resorted to external loans since 2009, when the Conservatives assumed control of the authority. Council leader James McInnes stated, “So for all that has been said, we have been a prudent administration,” asserting that current debt levels remain “considerably lower” compared to those when his party took office.

The budget proposal, however, came under heavy scrutiny from opposition members, particularly from the Liberal Democrats, who expressed concerns about the fiscal direction in which the county is heading. Councillor Alan Connett (Liberal Democrat, Exminster) warned that Devon could be facing a bankruptcy scenario within a year, citing the need for government intervention regarding Special Educational Needs and Disabilities (SEND) spending. He highlighted that the current financial plan relies on the government extending the allowance for councils to ring-fence their deficits—a measure set to expire in March 2026. “The financial statement on the robustness of the budget comes with a proviso,” he remarked, emphasising potential vulnerabilities in the council’s fiscal health.

Devon’s projected cumulative deficit related to SEND is set to reach £132 million by the end of March and is forecasted to approach £163 million the following year. Despite the criticism levied at the budget, some council members remarked that the Liberal Democrats had not offered viable alternatives to rectify the financial predicament. Councillor Carol Whitton (Labour, St David’s and Haven Banks) found the Liberal Democrats’ stance perplexing, asserting that while they deemed the budget unsatisfactory, they failed to propose an alternative solution. “I find that disingenuous and irresponsible,” she stated.

Moreover, Councillor Tracy Adams (Labour, Pinhoe & Mincinglake) blamed the Conservative administration for the budget crisis, labelling the handling of SEND matters as a “master of its own misfortune,” and expressed concerns that the situation had deteriorated without timely action from the governing party.

Amidst the divisions, a majority of 38 councillors voted in favour of the proposed budget and the associated tax increase. Conversely, four councillors opposed the budget, while seven chose to abstain from the vote, reflecting intra-party dissent among some Conservative members who disapproved of the extent of the proposed tax rise.

Source: Noah Wire Services