Council at centre of social care ‘sweetheart deal’ allegations to quit LGA
The council at the centre of a row over allegations of a “sweetheart deal” on finance plans to leave the umbrella body for local authorities.
Surrey County Council leader David Hodge (pictured) has written to the Local Government Association (LGA) giving 12 months’ notice of his intention to quit the group as a cost-cutting measure.
The move follows a row over Tory-led Surrey’s politically embarrassing proposal for a 15% hike in council tax which was later shelved following extensive contact between Mr Hodge and senior Government figures.
Labour leader Jeremy Corbyn has accused ministers of offering a “sweetheart deal” to the council – which includes the constituencies of Chancellor Philip Hammond, Health Secretary Jeremy Hunt and Transport Secretary Chris Grayling – a claim denied by the Government.
The council abandoned the planned 15% tax hike, which would have required a referendum, and instead opted for a 4.99% rise.
But as a money-saving measure, the council is set to leave the LGA and three other bodies unless its finances improve.
A Surrey County Council spokesman said: “Along with many councils up and down the country Surrey is facing huge financial pressures, due to a combination of reducing government grant and increasing demand for vital services, and these pressures are set to continue.
“It is therefore essential we consider every aspect of our spending and that is why we have given notice on our membership of four associations – the Local Government Association, The County Councils Network, South East England Councils and South East Strategic Leaders.
“Giving notice means we will be able to make a final decision in a year’s time – based on the financial position for the council at that time – on whether to leave these associations.”
Local Government Association chairman Lord Porter said: “We have been working hard on behalf of all councils to highlight the financial challenges and the consequences of the funding gaps they face in the years ahead.
“We are also working with councils and the Government on the fair funding review, making sure all the factors that influence the need to spend are considered.
“By working closely with our members, we have also successfully secured £2 billion of extra funding for social care over the next three years and also new funding for school improvement and road repairs for councils.
“Providing real value for money for all of our members and securing the best possible deal for all councils remains our top priority.
“It is normal for councils to look at their membership of the LGA when scrutinising their budgets, given the tough financial climate they all face.
“As of today, there is only one current member council yet to confirm its membership of the LGA next year.
“We are constantly listening to what our members tell us in order to improve our membership offer and the services we provide to councils.
“We will continue to work hard to represent the whole of local government as we ensure the benefits of being in membership outweigh the cost of subscriptions.”
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