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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Planning and Building Control

Royal Borough of Greenwich
up to £140,000
Our new director will play a key role at the heart of the Council’s ambitious agenda for place‐based growth and regeneration. London (Greater)
Recuriter: Royal Borough of Greenwich

Assistant Director, Strategic Property

Royal Borough of Greenwich
circa £120,000
This exciting property leadership role combines commercial, civic, and heritage asset management London (Greater)
Recuriter: Royal Borough of Greenwich

Chief Executive

Eastleigh Borough Council
circa £150,000
We embrace the opportunities presented by reorganisation and devolution across the region. Eastleigh, Hampshire
Recuriter: Eastleigh Borough Council

Corporate Director, Corporate Services and Section 151 Officer

Luton Borough Council
up to £160,170 per annum
We have delivered significant progress and stand on the cusp of a once-in-a-generation opportunity. Luton, Bedfordshire
Recuriter: Luton Borough Council
Linkedin Banner