Peterborough City Council has been offered what it believes is a ‘guaranteed’ three years of future funding from the Government.
However, the council admits that due to the recent EU referendum there is a “significant risk” that what it believes is guaranteed funding could actually be withdrawn or amended.
The cash-strapped authority, though, is preparing to accept the deal which would see its 2016/17 £27 million revenue support grant reduced to just over £10 million in 2019/20.
But the offer is only acceptable if the council produces an ‘Efficiency Strategy’ which is expected to be approved on Monday.
If the funding offer until 2019/20 is not accepted then the council will not know how much money it will receive more than one year in advance.
From 2020 onwards, the council says a new system could be in place where the Government grant is removed but that the council keeps 100 per cent of the business rates it collects.
Councillor Irene Walsh, cabinet member for communities and environment capital, said she expects the cabinet to take the Government’s funding offer.
The council believes more will be known following the Government’s next budget, which it expects in the autumn.