Laura Sharman 19 March 2015

Budget 2015: Fears councils will ‘struggle’ to cope with funding cuts

Council leaders have attacked yesterday’s Budget announcement for failing to protect funding for local services and limiting devolution to a handful of places.

The Local Government Association (LGA) said while it welcomed the news a number of places will be allowed to retain a greater share of business rates, this approach should be rolled across the country.

‘Councils have long been calling for reform of out-of-date business rates and for any growth in receipts from this tax to be retained by local government,’ said chair of the LGA, Cllr david Sparks.

‘The announcement of pilots in Greater Manchester, Cheshire East, Cambridgeshire and Peterborough keeping a greater share of this income is a significant step forward, but one which should not just be limited to a handful of areas. All parts of the country should be able to reap the benefits of having a thriving local economy.’

The LGA also criticised the chancellor for failing to protect social care budgets, warning the system is ‘stretched to breaking point’. Cllr Sparks said: ‘Investing money in the NHS while forcing councils to cut their social care budgets is simply a false economy.’

The LGA called on the next government to protect funding for local services, set out a new settlement for England which devolves more powers and freedoms, and tackle the adult social care ‘crisis’.

Chief executive of CIPFA, Rob Whiteman, also hit out at the Government’s limited reform of the business rates system, saying it was ‘concerning’ only a few local authorities would receive the additional retention rate.

He also warned that in 2015-16 alone, funding for councils will fall by 23% on top of the cuts already faced.

‘Local services are already stretched thin and while many councils have dealt well under the pressures they have faced, there are increasing instances of them struggling to cope under the strain of their finances. The impacts of these cuts are now feeding through into pressures for other areas of the public sector such as the NHS and the criminal justice system.

‘With this in mind, those who are serious about the future of local councils and the services they provide must ask if the continued trajectory of funding cuts are sustainable or desirable.’

SIGN UP
For your free daily news bulletin
Highways jobs

Electrician

Derbyshire County Council
Grade 8 £29,719 - £31,691 per annum
You will be joining a team of eager and ambitious electricians Chesterfield, Derbyshire
Recuriter: Derbyshire County Council

StreetScene Deputy Operations Manager

East Devon District Council
£44,075 - £51,356 per year
If you’re someone who thrives on variety, loves being out and about... East Devon
Recuriter: East Devon District Council

Adults Social Worker - Neighbourhood Team

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
We welcome applications from Experienced and Newly Qualified Social Worker's (NQSW). The starting salary for a NQSW is £36,124 per annum, rising to £ England, Essex, Harlow
Recuriter: Essex County Council

Road Safety Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
We are recruiting Engineers to join our growing Traffic Engineering team. Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Road Safety Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
The post holder will be based out of County Hall in Northallerton but there will be regular travel county wide as well as homeworking. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner