A PROPOSAL to create one single new council is being put to all of the councillors from West Devon Borough Council and South Hams District Council later this month.

Like many other local authorities across the country, West Devon and South Hams have been facing huge financial pressures due to the phasing out of the money they used to get from Central Government.

The reduction in government funding (revenue support grant and the councils share of business rates) has been dramatically reduced by £3-million in West Devon and £4-million in South Hams since 2009/2010.

However, through sharing services since 2007, the councils are currently saving £6-million a year. Despite this the councils are still facing a combined budget gap of £1.9-million each year after 2020, due to further government cuts.

Local councils are not allowed to set a negative budget, so West Devon and South Hams will have to find ways of closing that gap. If either of them cannot set a balanced budget in 2020, the councils said there would be severe financial consequences for both authorities because they are so intertwined.

Leader of West Devon Borough Council Cllr Philip Sanders said: ‘The report on this proposal was issued to council members at 5pm on Monday (July10).

‘It is due to go before of our hub committee on July 18. Until members have had time to read it fully and deliberate it, there is not much more I can say at this stage.’

Cllr John Tucker, leader of South Hams District Council said: ‘We know that there are some key concerns that the public will have, and in the proposal you will see how we plan to address those concerns.  The biggest one for residents is likely to be the difference between the South Ham’s tax rate and West Devon’s, which is approximately £63 a year on a band D property. 

 ‘If the proposal goes ahead we would need to bring the two council tax charges to the same level and this may mean that South Hams residents will see an increase over the next few years, until they are at the same level.  In the proposal we have laid out some different options for how this could be dealt with.

‘If we do not do this, there is a risk that South Hams and West Devon will run out of money after 2020, due to the lack of funding. We therefore want to make sure we consider all options to continue funding those services we know are vital to our local communities.’

Cllr Tucker said he knew these were very difficult decisions to make, but he said ‘both councils must address their financial positions so as to protect front line services’.