East Riding Leaders Sound Alarm Over Government's 'Fairer Funding' Review

Councillors in the East Riding have expressed deep concern following the government's announcement of a provisional funding settlement, which local leaders claim will leave the authority among the worst-affected in the country.

At last week's full council meeting, a motion was approved to formally condemn the proposals, which are expected to lead to a significant and structural loss of core financial support,.

A "Structural Reduction" in Funding

The local authority is reportedly facing a loss of £32.2 million from its current annual settlement funding, a change that will be phased in over three years starting from the 2026/27 financial year. Councillor Philip Redshaw, who proposed the motion to challenge these changes, described the settlement as a "major funding issue" rather than a standard budget adjustment. He argued that the government’s formula fails to reflect the genuine costs associated with rural and coastal service delivery and the needs of an ageing population.

Councillor Redshaw detailed the scale of the financial challenge:

"The government's fair funding proposals will see the council lose 61.7 million over the next three years and a further 32 million a year thereafter.

This is not a marginal adjustment. It's a major funding issue a cut dressed up as reform.

It's not a normal budget cycle by any means. It's a structural reduction that will shape the decisions that we make as a council for years to come.

And to put that loss in context, It makes the East Riding the fourth worst hit authority, the unitary authority in the country."

Rising Demands and Rural Challenges

The Council Leader, Councillor Anne Handley, has also voiced "serious concerns" about the implications for residents. She says that the new formula focuses on areas of deprivation and fails to recognise the unique difficulties of delivering services across a vast rural setting. This funding gap arrives as the council grapples with soaring costs in adult social care, children’s services, and Special Educational Needs and Disabilities (SEND).

Councillor Handley says the authority's finances are facing multiple pressures:

"Rising demand in adult social care and children's services. The soaring cost of SEND. Yet again, we are at the bottom of the pile when it comes to SEND funding.

We've got wage pressures and now a major reduction in our settlement grant following the fair funding review.

All of this places serious strain on our ability to deliver services the way we always have.

The simple truth is that our long-standing structure no longer fits the challenges we face. That is why we're having a strategic review. It sets out a clear, responsible plan for a council that is leaner, sharper, and more sustainable."

The Path Forward

In response to the settlement, the council has resolved to write to the government to demand a "transparent, evidence-based and genuinely needs-led funding system". Internally, the leadership has already begun a "full re-design" of council operations. This includes:

• A strategic review to move towards a leaner and more efficient operating model.
• A new "target operating model" to modernise how the council works.
• Ongoing lobbying of the government alongside local MPs to secure a better deal for the area.

Despite the "significant reduction" in support, Councillor Handley maintained that the council is working hard to fight for its residents and remains committed to building a resilient authority for the future,,.