Tuesday 2nd June 2009

Cornwall council tax payers are losing out by £92million this year in Government funding compared to other parts of the country. The staggering figure – enough to slash £386 from every council tax bill, is revealed by research published today by Matthew Taylor MP.

The latest formula grant allocation for local councils sees Cornwall lagging ever further behind the rest of the country. Cornwall will receive £377.45 per person in 2009/10 compared to a national average of £548.98 per person across England as a whole. The grant supports local council services, with the rest made up by Council Tax. The Cornish shortfall amounts to £171.53 less for every resident over the coming year or £386 for every household – £92 million lost across Cornwall as a whole.

Despite the shortfalls, under Lib Dem leadership council tax in Cornwall has been held £175 below the national average. However, if government funding matched the national average received by councils in England, Cornwall’s council tax could be a huge £566 less than the national average.

Matthew Taylor, MP for Truro and St Austell has written to Hazel Blears, Secretary of State for Communities and Local Government, highlighting the difference and demanding a review of what he condemned as an “unfair funding formula, first introduced by the Conservatives and which has not improved adequately under Labour”.

Commenting, Mr Taylor said:

“Public services in Cornwall have been historically underfunded ever since the Conservatives introduced funding formulas disadvantaging Cornwall. The latest figures show Cornwall lagging even further behind, costing every resident over £170 – adding £386 to average household council tax.

“Not only have Labour failed to act, but in their Council campaign the Conservatives claim Cornwall receives a “generous funding settlement from central government”. I am shocked that anyone could consider a funding settlement which short-changes each individual in Cornwall by over £170 per year ‘generous’. Clearly neither Labour nor the Conservatives will fight for a fairer deal for Cornwall. In contrast, Lib Dems have held Cornwall Council Tax £175 below the national average, and are campaigning for the fairer funding which would cut council tax by more than another £386.”