One difference I’ve found between the world of business and the political world is money; there is always more demand for Government funding than there is money available. Every single request for extra funding is completely valid, whether it’s more spending on health and social care, more spending on education or more funding for local councils who deliver vital public services. This is the challenge the Chancellor has to try and resolve when delivering the budget which takes place next Monday. The Government has already committed to additional funding for the NHS to the tune of £20.5 billion by 2023/24, and the Chancellor will set out how these funds will be raised next week.
The economy is doing well with inflation falling to 2.4% and wages growing 3.1% in the three months to August 2018. This is the highest growth in wages for almost a decade. It is clear that whilst pressures to increase spending are enormous there is a cost to borrowing which cannot be ignored. We currently pay £55 billion in interest costs on previous borrowing – this is dead money and is why the Government is determined to reduce the difference between what we raise as a country and what we spend.
That said, West Sussex MPs are concerned about the proposals from West Sussex County Council (WSCC) to potentially reduce funding to key services and we held a meeting with the Minister responsible for Local Government this week. The core of the problem is that WSCC have a statutory duty to support adult and children’s social care needs across West Sussex. The cost of this provision is rising every year as our population grows and we live longer. This represents a sizeable proportion of the budget which leaves funding squeezed for other services that WSCC support.
On 16 April WSCC went out to consultation to find out what people’s priorities are for its children’s, adult social care and Fire and Rescue services. Clearly these services are vital to support residents across West Sussex and are much needed. West Sussex MPs are very concerned to ensure that constituents have the local services they need and have been meeting with Ministers who are responsible for local government funding to press the case for West Sussex.
We have wonderful public services in our county which are funded through a variety of means including charitable donations. Of course, ensuring value for the tax payers money is critical and we must use our scarce resources wisely, but it is vital that we fund those services which our most vulnerable residents rely on.