The leader of East Riding Council has warned there could be difficult economic times ahead
but has welcomed the latest steps towards launching the Humber Freeport
East Riding Council’s leader has welcomed the latest steps towards launching the Humber Freeport, but warned of difficult economic times ahead.
Cllr Jonathan Owen, conservative leader of East Riding Council, said Humber authorities were set to draft a business case for the Freeport which could create up to 7,000 jobs regionally.
But the leader added uncertainty around local government funding announcements from Chancellor Rishi Sunak’s Budget and social care pressures presented looming economic and financial challenges.
Cllr David Nolan, leader of the Liberal Democrat opposition, said the East Riding should insist on more control over its local finances in light of Budget announcements.
It comes as the chancellor said £1.6bn would be made available for all local authorities every year until 2024-25.
But Cllr Owen said local authorities would be expected to use their shares of the cash to cover additional costs from public sector pay rises, inflation and other pressures.
It also comes as Economy Portfolio Holder tabled a motion on the rising cost of living, calling on struggling locals to seek council help.
She said rising prices could create an impossible challenge for some local families who could be left choosing between heating their homes and feeding themselves.
Cllr Nolan said local authorities should take back control, particularly over their finances.
He added Brexit was the elephant in the room on the cost of living issue and claimed much of the current economic hardship was due to government policies.
The council leader also said all options remained open for the Hull and East Riding devolution deal but the government was yet to confirm how it would move forward.
Cllr Owen said the current situation with local authority funding meant the East Riding would break even.
It comes as the authority is currently running an overall budget deficit of around £12m which has grown during the coronavirus pandemic.
The leader said: “There remains a lot of uncertainty as to whether some of the announcements for councils by the chancellor were new money or if it came from previous announcements.
“The £1.6bn a year available to local government until 2024-25 is understood that this is expected to cover all additional costs including inflation, pay and cost rises.
“The distribution to local authorities will not be known until late December.
“The public sector pay freeze is set to end in 2022, that and increases in the living wage and minimum wage will impact local authorities’ spending.
“Council tax increases are being capped at 2 per cent, plus 1 per cent for social care which the chancellor was making the assumption would be used.
“This was less than the previous year’s precept and less than what we budgeted for.
“We’ve also had the announcement of the 1.5 per cent increase in National Insurance to pay for health and social care.
“But almost 80 per cent of this will go directly to the NHS, pressures will remain on social care but the issue is the public may think problems are resolved.
“It comes as pressures also remain on the social care work force, workers are leaving for better paid jobs elsewhere in sectors like hospitality.
“But we have heard that we will now be able to prepare a business case for the Humber Freeport which is fantastic news.
“It’s particularly good news for those interested in renewable energy, with opportunities for hydrogen power and offshore wind.
“The East Riding’s also been short listed as the possible location for a new nuclear fusion plant which would be in Airmyn.”
Cllr Evison said inflation rates of 4.2 per cent came ahead of winter and Christmas, one of the most expensive times of the year.
The economy portfolio holder said: “The rising cost of living is affecting us all, but for some the challenge is insurmountable.
“Families could face a real challenge at Christmas just to keep warm, there will be people who don’t know how to cope financially or where to go for help.
“We need to direct people to support they can get from the council, people shouldn’t have to make the choice between staying warm and eating.”
Cllr Nolan said he and other opposition Liberal Democrats backed Conservative calls for support on the cost of living but added the issues were coming from a national level.
Cllr Nolan said: “We support this motion but it doesn’t mention the elephant in the room which is Brexit.
“Disruption to supply chains has been caused by the loss of about 20,000 EU lorry drivers.
“Brexit will also undoubtedly affect our exports.
“The rising cost of living also follows the £20 cut to Universal Credit, taking benefits back to 1990 levels.
“While we as a council should do what we can we need to recognise that much of this hardship is being inflicted by the government.”