THE leader of Staffordshire County Council said the Government had dealt a “bitter blow” to many businesses.
Cllr Alan White spoke about the impact of last month’s budget at a cabinet meeting, where he also said funding pledged to support roads and children with special educational needs was not enough.
The Conservative council leader said increases in National Insurance would create real challenges for companies.
“The Chancellor’s budget statement last month was an important moment for local government, as it was for all public services. It was also a bitter blow for many of our local businesses.
“Supporting jobs and growth is a top priority for this council. Our investment into employment sites across the county has generated tens of thousands of jobs, we’ve halved the number of people without qualifications to improve job prospects and our business support programmes have supported thousands of businesses to start, survive and thrive.
“This makes the stories of businessmen and women – who now face huge pressure from National Insurance and living wage increases – very difficult to hear. Not only that, but our farming communities now face unimaginable and unexpected inheritance tax bills. This is something that for some will be the final straw.
“We continue to be on the side of business and will do everything we can to support their success.”
Before the budget was presented last month, Cllr White had called on Chancellor Rachel Reeves to provide local authorities with adequate funding to meet rising demand for support for children with special educational needs and disabilities (SEND).
He has also urged local MPs to lobby the Government for support.
Speaking at the cabinet meeting, Cllr White said:
“When it comes to the impact of the Chancellor’s budget on the council’s finances, there has been some positive news with extra money for children with special educational needs and disabilities and a recognition of the need to invest in the county’s roads.
“But the reality is that the commitments made are not nearly enough.
“To give you some perspective, nationwide, councils are carrying a £4billion deficit in providing support for children with additional needs. The Chancellor’s £1billion commitment is therefore a drop in the ocean compared to what’s needed.
“In Staffordshire, our SEND deficit is currently more than £30million, but we expect this to grow to over £200million in the next three years. There remains an urgent need to fundamentally reform the system so that parents and children can feel the difference.
“One of the unintended consequences of the Government’s underfunding of SEND services is that the deficit also reduces the amount we can invest in our treasury management programme. This year, we expect to lose over £2million – money that could have been invested into council services.”
Staffordshire is set to receive a £10million share of a national road repair funding pot worth £500million, cabinet members heard.
But Cllr White said:
“While any additional investment is welcome, this is just a fraction of the £472million committed to Staffordshire by the previous government as part of the Network North fund.
“This was worth an extra £40million a year for ten years to the county council and was only possible due to the cancellation of HS2. With the Chancellor’s commitment being just a quarter of what we had previously expected, some of our plans to fix more roads are likely to pause or stop as a result.
“So, with any budget statement, the devil is in the detail and this one has been no different. We expect more information in a Government policy paper sometime this month and in the Local Government Finance Settlement in December, but we will continue to push Westminster to make essential services financially stable for the future.”