Is it fair that people in Cornwall receive on average £264 per head (25%) per year less funding from central government than those in say, inner London?
As central government funding for Cornwall Council continues to decline and there is a widening gap between funding for rural and urban authorities, calls are being made for local businesses and residents to #StandUpForCornwall and fight for fairer funding allocations.
The Fair Funding #StandUpForCornwall campaign calls for more equitable government funding for Cornwall with data showing people in Cornwall receive on average £264 per head (25%) per year less funding than those in inner London[i].
Cornwall Council Leader Adam Paynter said the Council has an important role to play in lobbying government for fairer funding with the goal to unlock £39 million for the Duchy, providing an extra £71 for services per resident every year.
“Over the last five years we have gained additional freedoms and flexibilities on how we receive and spend our money due to the Cornwall Devolution Deal. We’ve been at the forefront of initiatives such as 100% business rates retention and we benefitted significantly from EU funding. However, the landscape is now rapidly changing.
“While we have always managed to deliver a balanced budget, it is becoming more difficult to balance the increasing demand for local services against the reducing level of funding we receive from central government – which is significantly less than many comparable county councils.
“Since 2010, we have delivered savings totalling £300 million, which have involved some very difficult decisions affecting local services. By 2021, our total savings will have risen to £377 million. But it’s not enough.
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“We are pleased this government is committed to genuine consultation on this, and there has never been a better moment for the people of Cornwall to make their voices heard. The Secretary of State for Communities and Local Government, Sajid Javid MP, is due to publish the Government’s long awaited review of local authority funding to consider the way the formula is calculated and how, if at all, it should change.
“We need to make sure that Cornwall’s voice is heard during Sajid Javid’s critical decision-making process on funding allocations, which is why I’m calling on the people of Cornwall to make a stand.
“We are working incredibly hard to manage the severe financial pressures but we need to ensure the Government’s funding formula provides a fair deal for residents and puts us in a stronger position to protect frontline services as much as possible.”
You can show your support for the Fair Funding #StandUpForCornwall campaign on Twitter or Facebook, or by signing a pledge of support on the Cornwall Council website www.cornwall.gov.uk/council-and-democracy/fair-funding-stand-up-for-cornwall/
- Low wages and poor productivity make it hard for businesses and for Cornwall to compete nationally and internationally. Our geographic peripherality (60% of the population live in settlements of less than 3,000), average annual earnings significantly below the UK average (77.4%) and lower than average number of residents with NVQ4+ and above provide challenges that are unique to Cornwall.
- 32% of our working population are getting at or below the National Minimum Wage, with 44% ‘Just about Managing’
- 25% of our households are ‘workless’ (10% higher than England average)
- 42% of homes in Cornwall have workers who are getting working tax credits
(i)Inner London authorities average from Kensington &Chelsea, Islington, Camden, Hackney, Southwark, Hammersmith & Fulham, Westminster, Wandsworth, Lewisham, Lambeth and Tower Hamlets and Greenwich.