Government’s Fair Funding Review 2.0 plans could cost Hertfordshire County Council £50 million a year

In an open letter to Rt Hon Angela Rayner MP, Deputy Prime Minister and Secretary of State for Housing Communities and Local Government, Cllr Steve Jarvis, Leader of Hertfordshire County Council, has raised significant concerns about the impact the plans in their current form will have on the county.

Modelling of current proposals indicates that the Government’s proposed methodology will result in a significant grant reduction for the county council of between £47m and £54m which is the equivalent of nearly 10% of our overall annual adult care budget, nearly 20% of our spend on children’s services, or more than we spend on day-to-day highways maintenance and filling urgent potholes (£35m).  

This is because the methodology fails to take account of the specific challenges Hertfordshire already faces in funding adult social care services and supporting children with Special Education Needs and Disabilities (SEND).

The letter also highlights how proposals provide no ability for the county council to address this loss of income. If no changes are made, there will be a distinct and negative impact on the residents of Hertfordshire, especially the most vulnerable people in our communities.

Councillor Steve Jarvis, Leader of Hertfordshire County Council said:

“Our commitment to supporting residents is as strong as ever but it is important to be clear that the Government’s plans, as they stand, will have a significant impact on how we deliver the services residents need and value.

“We do not feel that the government’s proposals are fair for the people of Hertfordshire, particularly when our net contribution to the economy is taken into account. We will use every way possible to make our position clear, standing up for the people of Hertfordshire and protecting their interests.”

The Leader’s letter also sets out a number of changes the Government should make to the proposals to make them less damaging to Hertfordshire such as reviewing measures of deprivation to include rural deprivation (lack of social housing, car dependency, poor public transport and lack of access to health and social services) and delaying implementation until after Local Government Reorganisation has taken place.