TOUGH times are being forecast in West Devon, following the announcement of Government grants to local councils. West Devon Borough Council will receive an average grant of an extra £67,000 (1.6% increase) a year over the next three years towards funding its services. But council leaders this week said the average grant increase, 2.6% less than the current rate of inflation, goes nowhere near meeting the authority?s unavoidable cost pressures of more than £800,000 for 2008/09. The council has already found savings and extra income of more than £325,000 from its £8.1 million budget. But, following the announcement on its grant, it is still left with a shortfall of around £200,000 to find. Cllr Margaret Garton, chairman of the council?s strategies and resources committee, said: ?This is a tough settlement for shire district councils like West Devon and in real terms, when you look at the inflation figures ,is a cut in grant. It?s nowhere near enough to deliver services. How can we invest in our rural communities when money is being drained away? ?The council will continue to work hard to achieve a good balance between delivering high quality cost effective services, sustain its current stable financial position and keep council tax as low as possible. ?In the last Government assessment, West Devon was in the top ten of all district councils in the country in management of its finances and proved to be delivering value for money. We do our best to minimise the impact on residents by ensuring we maintain our strong performance on value for money.? Government initiatives are adding to the financial pressures of the Council. From April 1 next year, the new national travel scheme will give free bus travel for over 60s and the disabled. The cost must be met by district councils. A further area of concern is with the rising costs of landfill ? with landfill taxes rising significantly each year pressure on all councils? budgets is increasing. West Devon is one of the most sparsely populated districts in the country yet it serves an area equivalent to the size of Greater London. The authority is the smallest staffed district council in the country with just 135 full time equivalent employees. The impact of its small population means that the council?s capacity to raise income is limited. An extra one per cent increase in council tax only raises an extra £34,000. West Devon faces unique issues in the borough with high house prices yet below average wage levels and the council strives to keep costs as low as possible for its residents whilst consistently continuing to improve its services.
