Fears are growing that Norfolk could be facing 'austerity 2.0', as County Hall braces for the impact of spending cuts from the new chancellor which could further widen its £60m funding gap.
Jeremy Hunt, who was appointed by prime minister Liz Truss last week to replace her first choice Kwasi Kwarteng, has told ministers they must make deep spending cuts and warned that decisions of "eye-watering difficulty" lie ahead.
Norfolk County Council depends on funding from government to provide vital services, meaning that the tightening of the Whitehall purse strings will leave the authority's own budgets further stretched.
County Hall is already wrestling to plug a £60m funding gap, and there are concerns that it will be forced to consider even more far reaching cuts and savings in services such as libraries and museums.
There are also warnings the authority's ability to support vulnerable people - at a time when the cost of living crisis means more people need support, including from the care sector - could be fettered if its coffers take a further hit.
One opposition councillor said the county was facing the prospect of "austerity plus", which would be comparable with the policies of the 2010s.
The county council had already outlined how it needs to save £60m in 2023/24, as part of efforts to plug a £116m gap by 2027.
But, with Mr Hunt tasking cabinet colleagues with reviewing departmental budgets to find ways of saving taxpayers’ money, there is concern councils will get even less cash from Whitehall - and the funding gap will widen.
Andrew Jamieson, the council's cabinet member for finance, said: “I have been very open about the significant pressures facing our budget and so I will be very interested to hear what the new chancellor says about public spending on October 31.
"We continue to press the government for fairer funding for councils, seeing that we play such a crucial role in supporting the vulnerable people that the chancellor has, rightly, identified as his key priority.”
Bosses at the Conservative-controlled council had already said there is a "significant risk" the authority will have to consider cuts to service levels, while jobs at the authority are also at risk.
In July, the authority outlined how it intends to save £13m, including part closures of recycling centres and reducing the mobile library service.
And a further £19.5m savings were proposed last month, including £11.7m from adult social services and £1.8m from children’s services.
But that still leaves £27.5m more to find for 2023/24 and Steve Morphew, leader of the opposition Labour group, said if Mr Hunt does restrict public spending further the gap could be increased further.
He said he feared a period of 'austerity plus' could mean the council moves to change thresholds at which people are eligible for care in an attempt to save money.
Mr Morphew is chairman of the council's scrutiny committee and will quiz Mr Jamieson about the issue at a meeting today (Wednesday, October 18).
He said: "They are in the position where so much has been cut in previous years that it can now only fall on non-statutory services or they change the eligibility thresholds for the services they legally have to provide.
"If they haven't got the money, then they cannot provide the services.
"I think we are now in a period of austerity plus - after 10 years of austerity.
"But on top of that, we now have inflation and, if last winter is anything to go by, increased demand for adult social care."
The Local Government Association, which represents councils, is lobbying the government for more money to help stop service cuts.
Its chairman James Jamieson said: "The news that government departments have been tasked with identifying efficiency savings from public sector budgets has sent a collective shiver down the spine of local government.
"It comes at a time when the future financial sustainability of councils and local services is already on a cliff-edge."
Andrew Proctor, Norfolk County Council's leader recently wrote to South West Norfolk MP Ms Truss urging her to do more to help councils - or risk authorities having to impose "damaging" council tax rises.
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