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

Director of Place

West Oxfordshire District Council
£95,202-£104,722 per annum
West Oxfordshire District Council is seeking an exceptional and forward-thinking Director of Place Witney, Oxfordshire
Recuriter: West Oxfordshire District Council

Business Engagement Coordinator

Middlesbrough Council
£39,152 - £40,777
We have an exciting role on offer within our Community Learning Service as a Business Engagement Coordinator. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Audit & Risk Apprentice

Kirklees Metropolitan Council
£12.42 per hour
As an Internal Audit & Risk Apprentice, no two days are the same. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Housing Officer (Employment & Wellbeing)

Kirklees Metropolitan Council
£17,217 to £18,640
Kirklees Homes & Neighbourhoods is responsible for almost 23,000 homes across Kirklees. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Civil Engineering Technician Apprenticeship

Kirklees Metropolitan Council
£12.42 per hour
Do you enjoy problem‑solving and learning new skills? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner