Government funding turned down

Shire Hall
Shire Hall

A government offer of funding to Cambridgeshire County Council has been rejected.

Under the proposals, the Revenue Support Grant provided from government to the council would be £15 million in 2017-18, nearly £4 million in 2018-19, and in 2019-20 the council would need to make a contribution to central government of £7 million.

Part of the debate focused on whether the council would make up the £7 million contribution by being able to retain business rates, and whether the council could face bigger deficits if it did not accept the deal.

Chief finance officer Chris Malyon had recommended to the council’s General Purposes Committee that it accept the proposal. However, an alternative recommendation was proposed to “refuse the multi-year settlement but argue the case that Cambridgeshire should not be disproportionately hit by funding reductions because of its current under-funding and its role as an engine of economic growth.”   

Eight Conservative councillors voted against this, but the other nine councillors voted for it.

The county council has to save £100 million over the next five years having saved around £186 million since 2010.