A LOCAL government leader has called for a new financial deal for councils such as Hull and the East Riding.
Both authorities are facing major changes to how they operate as they cope with unprecedented funding cuts from central government.
Hull City Council says it will have to make about £48m of savings over the next two years, while the East Riding is in the middle of a programme to try to save £31m.
Like all councils, they rely on an annual government grant, known as the settlement, for the majority of their funding.
But on a visit to the region, Local Government Association (LGA) chairman Sir Merrill Cockell said the current system of annual funding settlements for councils should be scrapped.
He said: "What happens at the moment is mad, completely ridiculous.
"Next week, we will have the Chancellor's Autumn statement. That should give local councils some idea of the overall amount of money being made available for local government next year.
"After that, councils have to wait until Christmas to find out what their settlement will be and then spend a frantic few weeks trying to piece together a budget for the coming year.
"What we are calling for is a five-year settlement from government. That would give councils a much better opportunity to put together a long-term budget plan in much the same way as businesses do in the private sector.
"That way, councils could prioritise their spending on services in years one and two and then see what sort of payback there is in years three and four.
"Instead, councils are currently hamstrung by this ridiculous system of annual settlements, which does not make it easy to plan for the long-term."
Sir Merrell, who is also leader of the London borough of Kensington and Chelsea, said he did not agree with claims that northern councils were being unfairly treated by the Government compared with southern authorities, in terms of funding.
"I don't really buy that argument." he said.
"All councils are different and some are able to deal with financial pressures better than others.
"I would guess that every council will tell you it could do with more government funding. It's not something you just hear from local authorities in the north.
"The East Riding, for example, has a good reputation for sound financial management and this is because the authority took an early decision – well before the last general election – to start looking seriously at how it could make services more efficient while, at the same time, improving those services to the public."
East Riding Council leader Councillor Stephen Parnaby said: "We are really pleased that the chairman of the LGA has taken such a keen interest in our work by highlighting how we are reducing expenditure while safeguarding services."
