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

ICT Project Manager - WMF1528e

Westmorland and Furness Council
£39,513 - £40,476
We are excited to announce an opportunity for an ICT Project Manager within Westmorland and Furness Council Cumbria
Recuriter: Westmorland and Furness Council

Systemic Practitioner - WMF1532e

Westmorland and Furness Council
£43,693 - £44,711 (pro rata)
We have an exciting opportunity for a Systemic Practitioner to join our Family Help Service Cumbria
Recuriter: Westmorland and Furness Council

Digital Service Design Officer WMF1533e

Westmorland and Furness Council
£45,718 - £46,731
This is an exciting opportunity to join our fantastic Digital Innovation Team. Kendal, Cumbria
Recuriter: Westmorland and Furness Council

HGV & Municipal Vehicle Technician

Ribble Valley Borough Council
Scale 5 (scp 16-19) £29,572 to £31,067 per annum
In order to fully undertake the role of the HGV and Municipal Vehicle Technician you will have a minimum of 2 years of post-qualification experience. Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

Highway Network Officer - WMF1525e

Westmorland and Furness Council
£37,035 - £37,938
This role is a great opportunity for candidates who have good experience of highway, transportation, or construction design. Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.