Northumberland council warns it will need to make £8m of cuts next year
A North East council has warned that it will need to make £8 million worth of extra cuts next year after a Government funding shakeup.
Ministers announced significant reforms to council funding last month, aimed at diverting more money to deprived parts of the country that were “penalised” under previous formulas.
But the overhaul has sparked concern among large county councils that rural communities will see their services suffer.
Northumberland County Council warned this week that it is having to look for £8 million more worth of savings in 2026/27, on top of an original £20 million, due to money being directed “away from counties towards London and metropolitan areas”.
Nick Oliver, the Conservative-run council’s cabinet member for finance, told a meeting on Tuesday that it “doesn’t feel like rural communities are the friends of Government at the moment”.
He added: “It seems that the Government no longer recognises the remoteness indicator, which was basically a factor used in calculating what local authorities got. To my mind it is common sense – if you have a large county like Northumberland and you have to collect the bins from every house in Northumberland, some of those houses are a lot further away than they would be in a less remote area.
“The idea that suddenly we don’t have that extra burden, extra cost, and the Government are no longer seeing remoteness as a driver of cost just beggars belief to be honest.”
The Government says that councils will receive an overall £5 billion funding boost over the next three years and that the reforms would “correct historic imbalances and level the playing field”.
Some councils in less deprived areas have benefited disproportionately and built up cash reserves while others “struggled to cope”, the Ministry for Housing Communities and Local Government argued.
Labour’s local government minister Alison McGovern said: “It’s simply wrong that where you live determines the quality of services you get and ultimately determines your life – from birth to old age.
“These reforms end that injustice. By using up-to-date data and targeting funding to areas with greatest need, we’re reversing years of unfairness and unlocking opportunity in every part of the country.”
At a cabinet meeting at County Hall on Tuesday, Northumberland County Council also agreed changes to its council tax support scheme.
Coun Oliver said that the move to a banded council tax support system would make it simpler to administer and save around £2 million per year, as well as increasing support for the most in need.
Currently, all working age households applying for council tax support in Northumberland are required to pay a minimum 8% of their bill.
Under the new system, the poorest households will be eligible to pay no council tax at all.
However, council estimates show that 55% of households in receipt of a council tax reduction will receive less support under the new scheme.