DEVON looks set for at least a £16-million shortfall in Government funding for its major public services next year following this week's provisional local government finance settlement.

West Devon Borough Council is calculating its budget following this week's announcement on how much the Government will fund its council services next year.

West Devon's settlement is £5.3-million, an effective increase of 6.1 per cent on the previous year.

But the way in which the settlement is funded means the Government expects Council Tax payers in West Devon to find an extra 9 per cent from April 2002.

However the borough council is working hard to keep the increase to about 8 per cent following a rigorous scrutiny of all its budgets.

The complexities of local government funding are such that even an increase of 8 per cent in Council Tax only gives the borough an extra 1.6 per cent to spend.

Cllr Peter Hill, chairman of the policy and resources committee, said he was disappointed at the settlement.

'Clearly this figure is not enough to cover inflation or Government imposed legislation such as the modernising local government agenda.

'As part of this agenda, the borough is holding a mayoral referendum next month.'

Cllr Hill said the settlement meant the council would have to squeeze discretionary payments to other organisations.'

Vice chairman of Devon County Council's cabinet, Cllr Christine Channon, said the £16-million shortfall was 'deeply worrying news' for the people of Devon.

'We wanted a fair deal from the Government. But we're told we should spend £16 million less than it actually costs to provide vital public services now and those costs will rise next year as public needs grow,' she said.

Initial figures from the Government indicate a 6.6 per cent headline increase in funding for Devon County Council services which includes education, social services, roads and waste disposal.

The Government said Devon should spend £506-million on its services next year, but the council warned that those services already cost £522 million to run now and both public needs and costs were rising.

'The picture for Social Services is a real concern. We're currently investing £119 million on care of the elderly, the disabled and vulnerable children, but the Government says we should only spend £114-million on those services next year — a £5-million shortfall,' said Cllr Channon.

She also said flood warnings have rightly focussed attention on flood defence spending in Devon.

Cllr Channon said the Government's announcement was 'a real blow' to all those communities living with the threat of their homes being flooded.

'We have been told we should spend £3.8-million next year to help pay for these defences, but we're already investing £3.9 million now.'