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.’

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Programme Management Office

Hoople Recruitment
£55.001 - £59.609
The role of the Head of Programme Management Office is the lead professional advisor to the Council on the delivery of... Hereford, Herefordshire
Recuriter: Hoople Recruitment

Hylands Manager

Chelmsford City Council
£43,836 - £48,309
We are looking for the right person with the vision, drive and energy to meet the high expectations the Council has for Hylands House. Chelmsford, Essex
Recuriter: Chelmsford City Council

Partnership Coordinator

The Royal Borough of Kensington & Chelsea Council
£31,800 - £43,000 per annum
Are you passionate about making connections between people and making things happen? Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Business Support Assistant

City of York Council
£18,360 to £19,477 per annum
The successful candidates will be dealing with highly confidential and sensitive information about vulnerable service users. York, North Yorkshire
Recuriter: City of York Council

Campaigns Lead

Barnet London Borough Council
£38,799.00 - £43,590.00 Per Annum
We are looking for an experienced communications and campaigns professional with a strong public sector or health background. Colindale, London (Greater)
Recuriter: Barnet London Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue