THE leader of Essex County Council has written to the Prime Minister to criticise Government funding policy.

Tory David Finch told David Cameron further budget cuts unfairly penalised “well-run and low tax” authorities such as Essex.

The council has made savings of £560million since 2010, while maintaining a council tax freeze for five years in a row.

However, the latest Government funding settlements mean the authority must slash an additional £53million in the next financial year.

This is in addition to the £70million it was already having to save.

In his letter, Mr Finch said: “Local government is arguably the most efficient part of the public sector and has managed to maintain public satisfaction levels during these last few financially-challenged years.

“Yet I am concerned at the giant disconnect that is emerging between central government and local government on the ground.”

Mr Finch argued:

  • The settlement pays no attention to the needs of councils
  • Changes to the funding formula have been applied at the eleventh hour
  • The ability for councils to increase council tax by an extra two per cent to fund social care “will only go some way” to addressing budget pressures

Mr Finch also hit out at Government suggestions that councils should dip into their reserves to meet funding shortfalls.

He added: “I continue to be alarmed at central government misunderstanding, or even ignorance, about council reserves.

“Essex MPs have been told by the Department for Communities and Local Government that the council is sitting on £300million of unringfenced reserves.

“We actually only have about £60million. The reality is we have just 23 days of available funding in our general reserve.”

Mr Finch has called on Mr Cameron to give councils more “flexibility and freedom” to manage council tax locally.

He also wants the Government to look again at how much money it will hand out to councils in 2017/2018.