Laura Sharman 17 March 2016

Budget 2016: Local government left ‘deeply anxious’

Local government experts have warned the planned £3.5bn cuts to public services will mean financial uncertainty for councils for the next few years.

In his Budget 2016 announcement, chancellor George Osborne announced further cuts of £3.5bn to public spending by 2020 and business rate relief will be extended permanently.

However, Jonathan Carr-West, chief executive of the LGiU, warned this will leave many in local government ‘deeply anxious’.

‘It’s not clear where these cuts will fall but experience suggests they will hit local government either directly or through the knock on effects of cuts to welfare benefits,’ he said.

‘Only two months ago local government was offered the “certainty” of a four year funding settlement, but that certainty already looks illusory.’

Simon Parker, director of the New Local Government Network, also warned the extra cuts were at odds with the promise of stable funding for councils.

He said: ‘The government promised stable, long-term funding for councils, but today's announcements will only add to the sector's confusion. George Osborne promised further cuts for 2019 and knocked a huge hole in business rate income without spelling out how councils will be compensated.’

CIPFA also said the Budget announcement was likely to leave councils feeling ‘stitched up’ by the Government. CEO Rob Whiteman commented: ‘While councils will welcome reduced costs for small businesses, they are likely to feel as though they’ve been stitched up. Business Rate revenues are planned to replace Whitehall grants but have now been cut with no warning.’

The Local Government Association (LGA) said it was pleased Mr Osborne didn't announce any direct cuts to local government funding but said councils still needed financial stability. Lord Porter, chairman of the LGA, said: 'Councils now need a period of financial stability and consistency so they can plan for the pressures facing local services which lie ahead over the next few years and need to be protected from any more funding cuts during this Parliament. This, alongside greater power to run local services, is essential.'

The Treasury said local authorities will be compensated for the loss of income from business rates reform.

SIGN UP
For your free daily news bulletin
Highways jobs

Nursery Assistant

Durham County Council
Grade 4, £26,427 - £27,709 pro rata to hours worked.
Are you passionate about delivering exceptional childcare services? If so, this role is for you! We are seeking 2 dedicated and enthusiastic Nursery Stanley
Recuriter: Durham County Council

Lunchtime Supervisory Assistant

Durham County Council
£25,614 pro rata
Required from 2 November 2026 to work 6.25 hours per week 11.45am-1pm during term time. The Headteacher and Governors of Ropery Walk Primary School w Seaham
Recuriter: Durham County Council

Cleaner

Durham County Council
£25,614 pro rata
Required to work 9.25 hours per week, Mon-Wed 15
Recuriter: Durham County Council

Social Work Assistant

Durham County Council
Grade 6 - £29,071 - £32,046 pa.
The Learning Disabilities East Team provides an effective and efficient Assessment and Care Management service for adults aged 18 and over with learni Durham
Recuriter: Durham County Council

Assistant Chief Executive

Enfield London Borough Council
UP TO £190,000
We are seeking a strategic and forward-thinking leader who can bring together HR, Legal, Strategy, Digital and Communications Enfield (London Borough), London (Greater)
Recuriter: Enfield London Borough Council
Linkedin Banner