Following Chancellor Rachel Reeves’ presentation to parliament earlier today (Wednesday 26 November), Cllr Simon Clifford – Dorset Council’s Cabinet Member for Finance and Capital Strategy – reflects on the 2025 Budget announcements:-
“Today’s Autumn Statement is a bitter disappointment for Dorset and the wider Southwest. Once again, rural communities like ours are being left behind as the government favours devolved areas.
“We do welcome the removal of the two-child benefit cap – this will help some families in Dorset who are struggling in poverty.
“But beyond that, the news is bleak. Only Mayors of devolved areas will have powers to raise a tourism levy – a huge blow for Dorset, one of the UK’s top visitor destinations. Because government rejected the Wessex devolution proposal earlier this year, we miss out on this vital income stream – a lost opportunity to invest in infrastructure and our visitor economy.
“Mayors and Cornwall will also pilot business rate retention, creating yet another income source Dorset is denied, despite our readiness and strong plans for Wessex devolution.
“Adding insult to injury, councils must administer a new council tax surcharge on properties over £2 million, raising £400m nationally, but this funding will go to the Treasury rather than staying in Dorset.
“We urged the Chancellor to deliver fair funding that reflects the real cost of services in rural areas. Instead, local government barely got a mention. The government is no longer acknowledging the higher cost of rurality for services, with the exception of adult social care – costing Dorset residents millions in lost funding.
“Our residents already pay more and get less. 82% of our funding comes from council tax, compared to far higher government support for urban councils. Without fair funding, we are now facing impossible choices to balance the budget and protect essential services. We’ve heard the headlines; we now need to see the details, but my fear is Dorset is going to be worse off.
“Dorset and the Southwest deserve better. We need bold action to end the postcode lottery in local government funding and ensure rural communities are not left behind.”
