Divisive debate with party-political friction as Devon’s budget approved

Council tax will rise

A divisive debate between political parties criticising one another’s records eventually led to Devon agreeing how the county will spend its cash next year.

In an at-times heated debate, councillors picked apart the proposed budget for the county council for the next financial year beginning in April.

At this week’s full council meeting, councillors heard that council taxpayers would have to pay more as government grant funding becomes less generous.

Residents will now see the portion of council tax they pay to the county rise by 4.99 per cent – the maximum allowed – an average rise of £85.59, or £1.64 a week.

The total for an average Band D home will pay £1,801.26 to the county council. District councils, fire and police elements are added to make up the total  amount payable.

The ruling Conservative party accepted it would have to use extra income from changes to council tax on second homes to help it balance its budget, adding that the loss of a £10 million central government grant in December had hurt the council’s coffers.

It also will have to borrow an extra £9 million to help fund capital spending – used to pay for larger projects rather than day-to-day costs – as well as turning more than £35 million which was previously taken from reserves into external borrowing.

The council has not used such borrowing, such as bank loans, since 2009, when the Conservatives took control of County Hall. Leader James McInnes (Con, Hatherleigh and Chagford) said debt levels were “considerably lower” than when his party took over.

“So for all that has been said, we have been a prudent administration,” he said.

The Liberal Democrats heavily criticised the budget, although some of its members acknowledged the difficult situation Devon finds itself in, such as receiving the least generous government settlement of any of England’s 21 county councils.

Cllr Alan Connett (Liberal Democrat, Exminster) claimed Devon is potentially facing bankruptcy in just over a year’s time.

“Some people say it doesn’tm but the financial statement on the robustness of the budget comes with a proviso; simply that the finances are robust provided the government does something to assist on Send spending or extends the ability for councils to keep their deficits ring-fenced.

“That ability is due to end in March 2026, and if it isn’t extended, then the deficit comes and sits on the council’s books, wiping out its entire reserves.”

Devon’s cumulative deficit in relation to Send is expected to hit £132 million by March, and then rise to just under £163 million next year.

In spite of the criticism, other councillors suggested that the Liberal Democrats had not provided alternative solutions.

The eight Liberal Democrats present either voted against the budget or abstained.

Cllr Carol Whitton (Labour, St David’s and Haven Banks) said she found the Lib Dem position a “strange one”.

“They say on one hand it is a bad budgetm but are not able to put forward an alternative, and I find that disingenuous and irresponsible,” she said.

Cllr Tracy Adams (Labour, Pinhoe & Mincinglake) said the Conservative administration had been a “master of its own misfortune”, adding that it expected the government to “clear up their mess” in relation to the Send deficit.

“The need for action in this area [Send] hasn’t come soon enough and the problems are coming home to roost,” she said.

Cllr Julian Brazil (Liberal Democrat, Kingsbridge) who leads South Hams District Council, acknowledged Devon had done “appallingly badly in the financial settlement from government”, and claimed that in real terms – meaning accounting for inflation – it is essentially a funding cut.

Thirty-eight councillors voted to approve the budget and the council tax rise, with four voting against and seven abstaining. Some Conservative members voted against the budget or abstained because they didn’t want council tax increased as much as proposed.