Westmorland and Furness Council has expressed its deep concern and disappointment at changes proposed by government to the funding of services.
At this week’s full council meeting, many members voiced their opposition to the Fair Funding Review which is set to cut millions from the council’s annual grant which covers essential local services.
The council has submitted a robust formal response to the government’s consultation on the changes and awaits the outcome of its final financial settlement due in early February.
The council’s response expresses its concerns about the proposed new funding distribution and transitional arrangements. It warns that if the government proceeds, it will have a significant impact on the area as a rural authority.
Cllr Andrew Jarvis, Deputy Leader and Cabinet Member for Finance, said the new formula fails to recognise the higher costs of service delivery in rural areas like Westmorland and Furness and the significant impact the proposed reduction would have on services, including to the area’s most vulnerable people.
Additionally, the government appears to have overestimated the Council Tax income it will generate. All these changes will create a funding gap of £11m for 2026/27, £25m for 2027/28, and £40m by 2028/29.
Cllr Jarvis said: “We started assessing the potential impact of these proposed changes on our residents as soon as the Preliminary Settlement was published on 17th December. It was immediately clear that the provisional funding settlement for Westmorland and Furness would be extremely bad news for us and for our residents.
“Sadly, if the government goes ahead with its proposals, then our residents will be paying even more Council Tax in the future, while the council will have less to spend on vital services.
“Such a large funding gap can only be filled by fundamentally transforming how our council works and what our council does. It will lead to the council having to make difficult decisions; decisions that will definitely affect our services and what we can afford to deliver for our residents.
“We will continue to lobby government to ask them to reconsider their proposals and the devastating impact they will have on our area.”
Cllr Jarvis said that whilst the council has worked hard to deliver savings in its first three years and continues to find additional saving opportunities, it is urging government to reconsider its approach, restore rural weighting, and provide fairer transitional arrangements. This would help prevent severe service reductions and allow the council to continue to protect its vulnerable residents and communities.
Proposals to close the funding gap for 2026-27 will be presented at the council’s budget meeting next month.