Wednesday, 18 January 2017

Letter to Rt Hon Marcus Jones MP re our visit

Kirklees Council Deputation on Funding and Settlement

Rt Hon Marcus Jones MP

Parliamentary Under-Secretary of State

Department for Communities and Local Government

2 Marsham Street

London

SW1P 4DF 

Dear Rt Hon Marcus Jones MP 

 

 Thank you for meeting us yesterday to discuss the unique set of circumstances facing Kirklees Council since the autumn statement and our acceptance of the 4 year settlement for Kirklees. 

We discussed:- 

  • The low underlying funding base of Kirklees Council.

  • The combination of quantified unfunded pressure in Adults Services and Waste and the combination of volume and quality pressure on Children’s Services. 

  • The track record of substantial efficiency improvement and savings achieved by the Council to date. 

  • The late changes in the local government settlement and related announcements that risk undermining our financial plans for 2017/18. These relate to New Homes Bonus and Education Services Grant amounting to £2.26m in 2017 rising to £10.8m by the end of the period. This includes a loss of unringfenced New Homes Bonus Grant of £3.9m over the period replaced by a one off Adult Social Care Grant of £1.9m. The adverse impact of this in a district with two struggling hospital trusts will be real. It is impossible to find alternative resources next year with this notice. 

  • Our Council’s approach to accepting freeze grant and using resources in line with successive government’s policies.  

  • The cross party nature of the request to you from both Councillors and MP’s.
 

We also outlined that we are not necessarily looking for new money from government but urgently need the ability to bring forward funding that is available later in the 4 year settlement. 

We heard your message that you have very limited room for manoeuvre and that CLG does have room within its own resources to provide transitional assistance but we need to be clear that if any such resources were to be available to any part of local government, irrespective of funding source we have a clear expectation from our conversation that they would be available to Kirklees. 

We would also be grateful for any suggestions you have about mechanisms that we could explore with Treasury, DFE or any other government department to remedy the funding shortfall that the Council faces in 2017/18 in particular. 

We look forward to your early reply on this specific issue. 

You also encouraged us to take an active part in the fairer funding review which we have and will continue to do through the LGA, SIGOMA and in our own right. However that will not address the urgent need for resources in 2017/18 to underpin the delivery of our longer term savings plans which will bring us into surplus during the 4 year settlement period. 

We should make it clear that this is not our full response to the local government settlement but felt it would be helpful to write immediately following our meeting yesterday.

 

Yours sincerely

Councillor David Sheard               Leader of the Council
Councillor David Hall                    Leader of the Conservative Group
Councillor Nicola Turner               Leader of the Liberal Democrats
Councillor Andrew Cooper            Leader of the Green Party
Councillor Charles Greaves          Leader of the Valley Democrats