SURREY County Council leaders have held a crisis meeting with local government minister John Healey to emphasise the pressure public services and council tax will be put under following the announcement of next year's funding settlement. The authority demanded a meeting with the Minister for Local Government to discuss its concerns when it was revealed the settlement would once again fail to address service costs and demand pressures in the county. County council leader Nick Skellett, chief executive Richard Shaw and assistant head of finance Mark Baker went to Westminster to confront the minister with Surrey's case. This year's settlement from Whitehall consists of a £2.4 million grant increase for Surrey. This adds up to a rise of just 0.3 per cent overall – an effective cash cut when put alongside demands on the county. Mr Skellett said: "What we find hard to accept is the magnitude of the funding differences between ourselves and others, and the direction of travel, which is for that gap to widen further, placing ever- higher burdens on our council tax payers." In Surrey, council tax payers fund 82 per cent of services and the Government funds 18 per cent. In Manchester, the government funds 71 per cent of services. This means that people in Surrey have less spent on services, but have higher average council tax bills. The gap between the latest funding settlement and demand means Surrey's adult social care services will be struggling to meet a £32 million budget shortfall by 2012. Funding the service this year cost £220 million, while road maintenance costs £30 million per year, and waste services account for £30 million a year. The council's overall settlement from the government takes the total grant for this year to just over £123 million, against the council's overall budget of more than £600 million. Any gaps have to be filled from council tax. The county delegation outlined four key points to Mr Healey: • Revenue Grant Settlement for Surrey - low level of grant increase against service pressures and compared to other authorities • Capital Funding Settlement for Surrey - lack of capital grant or supported borrowing will have an impact on infrastructure investment • Other opportunities for funding - business rates or other local taxes • Funding formula - concern at a move away from assessed need.



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