Shock and heated debate broke out at a full council meeting of Westmorland and Furness Council in Kendal today as councillors clashed over the authority’s worsening financial outlook and the impact of government funding changes.
Members were told the council now faces an expected loss in funding of £40 million over the next three years, a sharp increase on earlier forecasts and a figure that prompted visible concern across the chamber.
Just before Christmas, consultants working for the council had estimated that funding reductions linked to the government’s Fair Funding Review would total £26 million over three years. Those projections put the loss at £3 million in 2026/27, £9 million in 2027/28, and £14 million in 2028/29.
At that time, the council’s proposed budget — which was put out for public consultation — identified enough savings to manage both existing pressures and the anticipated cuts. Work was also ongoing to find ways to close the expected £3 million gap in 2026/27.
However, councillors at today’s meeting were told the picture has since deteriorated with the provisional fair funding 2.0 announced by government, with the total funding gap over the next three years now expected to reach £40 million, intensifying the challenge facing the authority.
Councillors were reminded that the council is legally required to set a balanced budget for the forthcoming financial year. Proposals to close the 2026/27 budget gap are currently being developed and will be brought forward in the Budget Proposals Report to Cabinet and Full Council in February 2026, alongside all other identified savings.
While the council believes it can still balance the books for 2026/27, the warning for later years was stark. Beyond that point, councillors were told that significant reductions will be required to produce balanced budgets, with the authority facing the prospect of major transformation, efficiency measures and likely service reductions.
The debate underlined growing frustration among councillors, who warned that continued cuts could have serious consequences for local services and vulnerable communities.
Westmorland and Furness Council has urged the government to reconsider its approach and introduce fairer transitional arrangements, warning that without them the scale of the reductions risks forcing severe cuts to frontline services.
As the meeting closed, it was clear that while the immediate budget challenge will hopefully be managed for the next financial year with saving across council departments, the longer-term financial future of the council — and the services it provides across the district — remains deeply uncertain with the loss of millions in government funding to the council.
Concerns over current council projects include multi million pound town deals saw the conservatives and Labour members join forces to vote against the ruling Libdem party on a motion presented by Cllr Jarvis calling for the council leader and Chief executive to write to the government minister for housing and communities to express the deep concern of councillors over the settlement and its impacts and to ask for Government to seek ways to providing the funding the need to deliver acceptable services for its communities and delivery on the strategic program for Barrow.
The motion voted on passing at 27 to 26.
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