WEST Devon is receiving far less money from central government than it needs to fulfil its responsibilities, borough treasurer Lesley Halton told a meeting of local business people.
'The government assumes an increase in council tax of 7.1 per cent before all the extra burdens imposed on us,' she said at the West Devon Business Rates Consultative Forum at Kilworthy Park.
The standard spending assessment for West Devon, the government's official spending limit, is up by 4.7 per cent on last year to around £5-million, she said. The gap between council tax increases and council spending has widened over the past five years, due mainly to the shortfall in government support.
Of the council tax collected in the current year, West Devon spent only £114, against Devon County's spending £651. In the year 2001-2002, West Devon's proposed budget increase was £896,000, of which recycling, refuse collection and street cleaning made up £341,000, the largest element.
The government was expected to provide a grant of £129,000 towards this budget increase. This would create an overall budget shortfall of £181,000.
Business rates, which will increase by 1.4p in the pound next year, were set by the government, the borough council only collected them, she noted.
Presenting the county council budget, county treasurer John Mills said the standard spending assessment for Devon would rise 5 per cent in 2001-2002 to £493-million, while government support rose only 4 per cent. The county share of council tax was proposed to rise 7.46per cent.