Council faces annual £16m funding cut, leader says

Council leader Stephen Conway said the government's proposals could put more authorities under financial pressure

Fears have been raised the government could cut the funding a council receives by more than £50m over the next three years.

The Liberal Democrat administration at Wokingham Borough Council predicts it could lose £16m each year based on a new formula being proposed.

The Labour government is set to introduce a multi-year funding settlement for councils as part of the Fair Funding Review 2.0 consultation.

The government was contacted for a comment, and previously said it would make £69bn of funding available to councils across England.

Council leader Stephen Conway, said £50m over three years would be "a significant gap to plug".

He said he had written to local government minister Jim McMahon asking for a guarantee that no councils would be left unable to deliver services.

'Very difficult decisions'

Susan Parsonage, chief executive of the council, has also written to the heads of more than 50 councils that are potentially in the same boat as Wokingham.

Mr Conway said: "We cannot believe the government wants to see councils fail as a result of these financial proposals.

"Some councils will struggle to survive if these plans are not changed.

"Wokingham Borough Council is in a strong financial position, with a healthy level of reserves and a good track record of balancing the books.

"However, even here we will face very difficult decisions if there is no change in the government's thinking."

The council will submit its response to the consultation and individuals can respond by using an online form.

A government spokesperson previously said: "This government inherited a crumbling local government sector.

"We are prepared to take tough choices necessary to rebuild local government and give taxpayers the services they deserve."