Prime Minister’s ‘money is no object’ announcement is nothing more than a ruse
During the height of the storms and floods, the Prime Minister told the country and indeed the world, that money is no object to help communities recover from the unprecedented weather front Cornwall – and other areas – were subjected to.
Now the weather has abated, and we are in a more settled period of weather, the Council and other partners can fully assess the damage inflicted upon the communities. It is bleak, and the full costs are still unknown, but the costs is looking like topping £21m. For Cornwall Council this is made up of £4m revenue, and £17m in capital costs. This can be further broken down by:
So, what ‘money is no object’ funding streams are available to the Council? In truth, very little. Yes, we have the Bellwin Scheme, but apart from the dates to claim have been extended, the criteria to claim has not changed. The scheme can only be used to:
Futhermore, the Council will have to pay the first £887k excess. The potential claim by the Council is still be assessed, but early indications are approx £2m eligible spend. So in pounds, shillings and pence will mean out of the £2m, the Bellwin Scheme will only pay out £1.23m.
The critical point is that the criteria have not changed and therefore the majority of the estimated £21m worth of damage will remain unfunded by Central Government. So much for ‘money is no object.’ This means the repair bill will have to be found from elsewhere and/or from within the Council’s own budget.
It gets worse, as the promised £130m EA money will have little impact in Cornwall. It is good news for Somerset, as they will get £10m. A further £30m will be for EA assests. Priority is based on assets in the EA asset database. Which for Cornwall is only one, the rock-armour off Newlyn. The £130m will also not cover Coastal Assets just flood (fluvial) defence. To put it bluntly, Cornwall will not be at the top of the funding, or actually get any help.
Our roads in Cornwall have also been badly affected by the weather. Credit must go to Cormac who have worked to address the many issues. However, the Governments announcement of £140m for Highways will be allocated on a formula basis to all Local Authorities. And as yet, those allocations are unknown, though I am told should be known shortly.
The Leader of the Council, John Pollard has written to the Prime Minister highlighting the concern and extra financial pressures the Council now faces. The Leader has also written to the Secretary of State for Farming, Food and Rural Affairs to again highlight the European Fisheries Fund’s storm damage gear replacement scheme as over bureaucratic, with claim forms running to 21 pages. Plus having to submit business cases and three quotes. However, the real kick in the teeth on this funding is you cannot purchase lost gear until you have receive a letter from the MMO saying you can purchase it. I highlighted this in a previous blog HERE
The position Cornwall Council is difficult, it is looking at a huge bill of repair and recovery which it can little afford without changes and severe impact on the budget. It is all well and good for the Government to roll out a series of measures to help and think they have done their jobs, but those measures have to actually mean something, and more importantly have real funding attached to them.
So my message to the Prime Minister and Government is help is needed in Cornwall to recover from the weather. Without help, things are going to get very difficult for Cornwall Council.