Any hopes of a peaceful run-up to Christmas for Westmorland and Furness Council were shattered at today’s full council meeting in Kendal, as Westmorland & Furness Council’s Cabinet Member for Finance, Cllr Andrew Jarvis, delivered what can only be described as a budgetary horror story.
In a statement that veered somewhere between The Grinch and The Nightmare Before Christmas, Cllr Jarvis warned councillors that the authority could be facing “very, very substantial” funding cuts – far worse than previously feared – thanks to a new Government funding overhaul dubbed, somewhat cheekily, “Fairer Funding 2.0”.
The Government insists the new three-year settlement will “rebalance” funding based on up-to-date need and population data. But according to Cllr Jarvis, the reality looks anything but fair for rural areas like ours.
Under the plans, Whitehall appears to be shifting money towards urban areas and London boroughs, using updated deprivation scores and a controversial formula adjustment linked to house prices. Meanwhile, crucial factors for rural authorities – like remoteness, low population density and visitor numbers – are being downgraded or removed entirely in the government new funding formula.
Cllr Jarvis told the full council meeting that Consultants estimate Westmorland & Furness could lose around £15 million a year, phased in over three years – and Monday’s fresh analysis suggests the real figure could be even more brutal.
Cllr Jarvis didn’t mince words:
“Much-loved facilities may close”
“Key services could be reduced”
“Every ward could be affected”
The most vulnerable residents would be hit hardest.
To add insult to injury, councils won’t receive the final figures from government until the week before Christmas – leaving almost no time to plan, consult or make legal budget decisions with the council due to approve its 2027 budget consultation in Mid December to set the annual budget and council tax bills in the early new year..
Cllr Jarvis condemned the situation as “ridiculous”, saying councillors are being asked to perform financial miracles after years of austerity, spiralling inflation, and unprecedented pressure on services.
Despite the gloom, he urged colleagues not to panic – but admitted that “nothing can be off the table” when it comes to cuts.
An Uncertain New Year lay ahead for the council and the district with council briefings now being scrambled together, with officers poring over spreadsheets and politicians preparing for what could be the most painful round of budget decisions in the new council’s short history.
Cllr Jarvis said he “still hopes” the final announcement won’t be as catastrophic as feared – but offered little festive comfort, signing off with an apology that there was “not much in the way of Christmas cheer” this year.
Cllr Jarvis added "I hope that all members of this Council will recognise the uncertainty that we face and the difficulties this causes. It is ridiculous that Councils will get confirmation of massive swings on next year’s funding when it is too late to react to it."
"I have made this statement today because I believe that it is important for us to be transparent of the situation that we are likely to find ourselves in. This is not of our making, but is the consequence – unintended or otherwise – of the political decisions being made in Westminster. These are decisions which will affect us as a council – but more depressingly will impact upon the lives of our residents."
If Santa was planning to drop off a financial miracle, now would be a very good time for Wstmorland and Furness Council.
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