William Eichler 01 November 2022

Chancellor warned local services ‘on a cliff-edge’

Chancellor warned local services ‘on a cliff-edge’  image
Image: Semmick Photo/Shutterstock.com.

Local authority leaders have urged Prime Minister Rishi Sunak ahead of the upcoming autumn statement to ensure that councils have the funding necessary to protect local services.

A new report from the Resolution Foundation has outlined the options available to Chancellor Jeremy Hunt in his autumn statement – scheduled for 17 November – as the Treasury attempts to tackle the £40bn fiscal hole in the UK’s economy.

The think tank argues that the Government could cut investment, but warns this would damage growth and only lead to around £10bn of savings. It also says that the Chancellor could renege on pledges to raise working-age benefits and the State Pension in line with prices next year (saving £9bn) or increase taxes by, for example, reinstating the Health & Social Care Levy (raising £15bn by 2026-27).

The other option outlined by the Resolution Foundation is more austerity. Government departments, however, are already seeing their budgets fall in real terms by around £22bn by 2024-25 due to inflation. Against this backdrop, the think tank calculates it will be hard to save more than £20bn with cuts to public services.

Local authority leaders warned the Government against further austerity measures, arguing that councils are already struggling to deliver services after over a decade of cuts.

Responding to the report, Cllr James Jamieson, chairman of the Local Government Association (LGA), said: ‘The future financial sustainability of councils and local services is on a cliff-edge.

‘In the past decade, councils have done more than their fair share of the heavy lifting when it came to putting public finances on a more sustainable footing, having faced a £15bn real terms reduction to core government funding between 2010 and 2020.

‘The Government needs to ensure councils have the funding to meet ongoing pressures and protect the services that will be vital to achieve its ambitions for growth and to produce a more balanced economy, level up communities and help residents through this cost-of-living crisis.

‘Without certainty of adequate funding for next year and beyond, and given the funding gaps they face, councils will have no choice but to implement significant cuts to services including to those for the most vulnerable in our societies.’

SIGN UP
For your free daily news bulletin
Highways jobs

ESCA Apprentice

Essex County Council
Up to £14567.00 per annum
ESCA ApprenticeFixed Term, Full Time£14,567 per annum increasing to £23,557 in the second yearLocation
Recuriter: Essex County Council

Deputy Team Manager - Discharge to Assess

Essex County Council
£46574 - £56027 per annum + Flexible Working, Hybrid Working
This is a fixed term contract or secondment opportunity up to April 2027.The TeamThis is an exciting opportunity to join our Discharge to Assess team England, Essex, Basildon
Recuriter: Essex County Council

Adults Social Worker - North Essex (Expression of Interest)

Essex County Council
£37185 - £50081 per annum + Flexible Working, Hybrid Working
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in North England, Essex, Colchester
Recuriter: Essex County Council

Adults Social Worker - Mid Essex (Various Teams)

Essex County Council
£34902 - £50081 per annum + Flexible Working, Hybrid Working
We're an adult social care service that wants to see citizens of Essex have as much choice and control over the way they live their lives as possible England, Essex, Chelmsford
Recuriter: Essex County Council

Cycle Instructor

Essex County Council
£13.3000 - £14.1500 per hour + + mileage
Cycle Training InstructorEssex, County Wide From £13.30 per hour + mileage Temporary, As and WhenCommunity Based WorkerOver 18 years old - for insura England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner