Hull City Council has now received some of the information relating to its Provisional Funding settlement for the financial year 2014/15.

Deputy Leader of Hull City Council and Portfolio Holder for Finance, Councillor Daren Hale said:

“Understanding the implications of the settlement has been challenging, and whilst the Government has spoken about small reductions in funding for Hull, referring to a reduction in ‘Spending Power’ of just 5.5 percent in 2014/15, the reality over two years is a reduction of around 23 percent in our Core Funding from Government”.

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Brendan Arnold, Director of Resources and City Treasurer said:

“The Council is still reviewing the detailed information and this is needed to fully understand the implications of the headline numbers that have been provided.

“However these very serious reductions in funding confirm the messages set out in the Value Hull information campaign which forecast that new savings of £48 million will be needed to balance the 2014/15 and 2015/16 budgets for Hull City Council.”

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The Council will sustain (i) a reduction in Core Funding of £18.3 million in 2014/15 and (ii) a further reduction in 2015/16 of £23.7 million. This means that in 2015/16 a reduction in Core Funding of £42 million will have been imposed compared with the current year; a reduction of 23.5 percent in core funding over the two years.

The Leader’s draft budget, which will take account of these financial constraints, will be considered by the Council’s Cabinet in early 2014 and will then be considered at a Council meeting on 27 February 2014.

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Councillor Hale continued:

“It is clear that the savings will put significant pressure on the Council and services which, in some cases, will need to be undertaken at lower cost and, in others, will mean that the character and availability of services will change.”

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