William Eichler 03 July 2018

Council funding gap to reach £8bn by 2025

Council funding gap to reach £8bn by 2025  image

Local authority leaders have warned Whitehall that the next Spending Review will be ‘make or break’ for frontline services as councils face a funding gap of almost £8bn by 2025.

At its annual conference in Birmingham today, the Local Government Association (LGA) will launch a campaign to make the case for increased investment to support struggling local services.

By 2020, councils will have faced a reduction to central Government funding of nearly £16bn since 2010. This means local authorities will have lost 60 pence out of every £1 the Government had provided to spend on local services.

Next year, 168 councils will receive no more core central Government funding.

In a new report, published to coincide with the first day of the conference, the LGA estimates councils in England face a funding gap of £7.8bn by 2025.

‘We’ve reached a point where councils will no longer be able to support our residents as they expect, including our most vulnerable – let alone help the country to prosper,’ LGA chairman Lord Porter will say.

‘Councils have shouldered more than their fair share of austerity and have tried to reduce any impact on residents. But there is only so much they can do and the financial challenges they face are growing.’

Lord Porter will warn that the funding cuts over the last decade have undermined the provision of local services by councils.

‘Councils now spend less on early intervention, support for the voluntary sector has been reduced, rural bus services have been scaled back, libraries have been closed and other services have also taken a hit,’ he will say.

‘More and more councils are struggling to balance their books and others are considering whether they have the funding to even deliver their statutory requirements.’

‘If the Government allows the funding gap facing councils and the local services to reach almost £8bn by the middle of the next decade then our councils and local services will be damaged beyond recognition,’ Lord Porter will say.

‘The impact on society – all places, all generations, every person – will be hugely damaging. Millions of people will be deprived of the vital local services that help improve quality of life and bind communities together.’

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - SGO & Connected Person Assessment Team

Essex County Council
Negotiable
Special Guardianship Order (SGO) & Connected Person Assessment Team The SGO and Connected Person's Assessment Team (North & Mid) first started in Apri England, Essex, Chelmsford
Recuriter: Essex County Council

Economy & Business Service Manager 

Harborough District Council
£49,350 to £52,368
Looking for an experienced manager who understands public sector responsibilities with the proven ability to deliver our ambitions. Market Harborough, Leicestershire
Recuriter: Harborough District Council

Head of Income and Financial Inclusion

The Royal Borough of Kensington & Chelsea Council
£48,800 - £66,000 per annum
You’ll have excellent interpersonal and communication skills, with a substantial track record of successful performance management. Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Advanced Practitioner

The Royal Borough of Kensington & Chelsea Council
£33.600 - £45,400 per annum
Looking for an Advanced practitioner Social workers to join the Adult social services in the... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Adult Principle Social Worker

The Royal Borough of Kensington & Chelsea Council
£36,600 - £49,600 per annum
The successful candidate will be a passionate and skilled communicator with ability to work alongside operational Social Workers and... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue