Windfall emergency fund ruled out by Lincolnshire County Council

Plans to put a multi-million-pound windfall into a cost of living emergency fund has been shot down by county councillors.

The council spent £7 million less than expected last year.

Opposition councillors warned that people were facing an unprecedented crisis, and £1.5 million of the underspend should be devoted to helping them.

However, they weren’t backed by Conservatives, who said district councils were already providing plenty of support. 

The windfall will be split between £5 million for highways repairs and a £2.4 million contingency budget.

Independent Councillor Phil Dilks proposed that these were changed to £4 million and £1.9 million respectively in order to create the emergency fund.

“The cost of living crisis is already hitting many already. In tough times, councils have a duty to step in and do something,” he said.

“We have already made good progress in tackling potholes. But people are facing eyewatering costs and the highest inflation for a generation.”

He was backed by Labour’s Councillor Karen Lee, who said: “I understand the need to keep money back for a rainy day – but look outside, it’s pouring.”

The emergency fund would have aimed to provide heating, food and social contact for vulnerable people, as well as resources on financial advice.

A report said the proposal was viable, but that the council faced volatile economic conditions.

Conservatives claimed that district councils were making preparations for a difficult winter, but the problem with roads couldn’t be ignored.

Leader Councillor Martin Hill said: “We are certainly not ignoring the cost of living crisis.

“A lot of taxpayers money is rightly being given to the problem. From our perspective, it is sufficient – and if it doesn’t turn out to be sufficient, we will make more available.”

Councillor Thomas Dyer said: “The council’s finances aren’t as rosy as the opposition claims. The cost of paying employees will go up £8 million this year, and we have a responsibility to make sure we can meet that.

“We’re not doing this because we’re ‘nasty Tories’ – we’re running a responsible council.”

Councillor Hugo Marfleet said the districts were already doing a good job of providing emergency services, adding: “If we let the highways deteriorate, the cost gets horrendous.”

The amendment was defeated, and the council agreed on the original split for the cash in this year’s budget.