7th February 2025
County Council now more than £1-billion in debt
IT was only last month that Cornwall County Councillor Armand Toms told Morval Parish Council of his concerns about the amount of funding coming down to Cornwall from Central Government.
He said that the Barnett Formula used to determine the cash hand-outs to local authorities was out of date and ‘wrong at all levels’.
Cornwall residents were getting less money per head than the majority of the English population, said Cllr Toms, who will be standing down this May from his seat on the county council representing the Looe East and Deviock ward (it includes Morval Parish).
He added that the lack of financial assistance from the Government was having a huge effect on Cornwall Council’s services, especially in the provision of Adult Care, and he believed that Cornwall was being adversely treated compared to other areas.
Saying he was ‘disgusted’ at what was happening, Cllr Toms even feared that County Council could eventually go bankrupt without urgent assistance.
Those views appear to be borne out by numbers released from the Ministry of Housing, Communities and Local Government, which shows Cornwall owes just over £1.3-billion and is among the 15 most in-debt councils in the UK.
According to the Cornwall Live website (the Reach company-owned digital sister title to the Western Morning News, West Briton, Cornish Guardian and Cornishman newspapers) the fifth largest local authority in England is the 12th most in-debt council in the UK.
The figures, which have also been highlighted by the Reform national political party, reveal that the 20 most in-debt councils owe a total of more than £30-billion (although the overall total for all local authorities was thought to be more than £140-billion last year).
Since taking control in 2021, the Conservative-led Cornwall Council has frequently complained that it has been overlooked when it comes to funding from Central Government.
As a result it has struggled to balance the books when it comes to mandatory services such as social care, school transport and emergency housing.
For the third year running, the Council is set to make taxpayers shoulder the burden of a maximum 4.99 per cent rise in their council tax bills to help pay for a net revenue budget of £828.866-million for the coming financial year.
However, the County Council’s Conservative ‘Cabinet’ disagrees with Cllr Toms, an independent member, and says that it is still far off from facing bankruptcy because efficiencies continue to be made.
Cornwall Live reported a spokesperson for the authority saying: “Cornwall Council is the fifth largest local authority in England, and as a consequence has a significant budget, and multiple competing pressures on that budget.
“We are continually identifying savings we can make to continue to deliver a balanced budget for our essential services each year.
“The borrowing entered into by the council is only used to deliver the capital required for our public services such as housing, regeneration and local infrastructure in line with the council’s four priority outcomes.
“On December 31, 2024, our net borrowing, where total borrowing is offset by our investments, stands at £904-million.”
Cllr Toms, meanwhile, has called on the Duchy’s six MPs to step up to the mark and demand fairer action for the people of Cornwall. “We have to start standing up and shouting,” he said.