Short-changed and Underfunded: Lib Dems Warn of “Smokescreen” Budget as East Riding Faces £67m Hit.
The East Riding Liberal Democrats have sounded the alarm over the region's financial future, accusing the Government of “short-changing” local residents through a lopsided funding settlement that penalises rural and coastal communities.
Speaking during a pivotal budget debate at County Hall, Cllr Denis Healy, Leader of the East Riding Liberal Democrats and Leader of the Opposition, warned that the council is entering a period of "unprecedented change" that threatens the very fabric of local services.
A “Fair Funding” Fiasco
The core of the crisis lies in the Government’s new funding distribution model, set to take effect in April 2026. While framed as a "fair funding review," Cllr Healy argues the reality for the East Riding is a managed decline. The new settlement is projected to drain £67 million from the council over the next three years, resulting in a permanent annual loss of £32 million.
“The Government is choosing to give more money to urban authorities — many controlled by Labour — while areas like the East Riding, which are rural, coastal and ageing, lose out,” Cllr Healy said. “This is not an abstract accounting change. It will affect real people, real families, and real communities.”
Rural Communities Penalised
The Liberal Democrats have highlighted a glaring disconnect between the Government’s formulas and the geographic reality of the East Riding. Cllr Healy noted that delivering adult social care and transport across vast distances inherently costs more, yet the new system fails to account for these "rural premiums."
The disparity is perhaps most heartbreaking in education. Cllr Healy revealed that while a child in Camden receives £3,997 in SEND (Special Educational Needs and Disabilities) funding, a child in the East Riding receives a mere £999.
“Families are effectively being told to make do,” “That is not sustainable — and it is not fair.” Cllr Denis Healy
“Selling the Family Silver”
While the council has met its legal obligation to produce a balanced budget for 2026/27, the Liberal Democrats have pointed out that the "balanced" ledger masks a precarious underlying position. With reserves nearly depleted, the council is increasingly relying on one-off measures and capital receipts.
“This year, the books are being balanced on the back of the family silver,” said Cllr Healy. “That may ease immediate pressure, but it does not solve the underlying problem.”
The Risks of “Transformation”
The council’s medium-term strategy relies heavily on £41.7 million in "transformation" savings—code for massive workforce changes, automation, and new IT systems. Cllr Healy cautioned that these savings are far from guaranteed and carry immense implementation risks.
“The delivery of transformation is the single biggest risk in this budget,” he told the chamber. “The financial plan includes the savings — but not the real costs of delivering change on this scale. You cannot deliver savings without admitting the costs.”
A Vote of Responsibility, Not Approval
Despite their deep reservations about the Government’s "smokescreen" figures, the Liberal Democrat group confirmed they would support the 2026/27 budget solely to ensure the council meets its legal duties and maintains essential services for the coming year.
However, Cllr Healy made it clear that this support is not a blank check.
“Support today must come with vigilance tomorrow. The Liberal Democrat approach is one of responsible stewardship now, so that the incoming administration has a genuine chance to secure a sustainable future for the East Riding.”
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