Jon Masters 26 June 2015

Councils face £3.3bn of cuts next year, warns LGA

Councils in England are facing a £3.3bn reduction in central government funding for local services in 2016/17, according to new analysis by the Local Government Association (LGA).

The LGA’s annual Future Funding Outlook report published today warns councils will need to make further significant savings next year, equivalent to 12% of their total budgets.

The LGA analysis predicts the upcoming Spending Review will cut funding for local services by a further 11% in 2017/18 and 4% in 2018/19 before increasing by 7% in 2019/20.

A combination of reduced government funding and rising demand on social care for an ageing population will leave councils facing a funding gap of £9.5bn by the end of the decade, the LGA says.

The LGA wants radical reform of the way public services are funded and delivered. Next week it will launch a separate report at its annual conference setting out detailed Spending Review proposals for the Government to ensure local services survive the next few years.

LGA chair, cllr David Sparks, said: ‘If our public services are to survive the next years, we urgently need a radical shift in how public money is raised and spent, combined with proper devolution of decision-making over transport, housing, skills and social care to local areas.

‘Fairer funding for local services, and the freedom to pay for them, will allow councils to tackle the big issues facing their residents and protect services which bind our communities together and protect our most vulnerable.’

Responding to the report, local government minister Marcus Jones said: ‘These are premature claims based on funding decisions which have yet to be made. Councils have worked hard over the past five years to deliver a better deal for local taxpayers, but like the rest of the public sector they will have to continue playing their part in tackling the deficit to ensure the economic recovery continues.

‘In the run up to the Spending Review and next local government settlement we will continue to listen to the views of councils, the LGA and others about the best way of distributing funding to achieve fairness, efficiency and local growth.’

SIGN UP
For your free daily news bulletin
Highways jobs

Engineer

Bristol City Council
£40,221 - £51,515
As part of a friendly and enthusiastic team, you will play an important role in designing innovative urban transport and public realm projects 100 Temple Street Redcliff Bristol BS1 6AN
Recuriter: Bristol City Council

Intelligence Manager - Quantitative and Qualitative Research

Essex County Council
Up to £69262 per annum
Intelligence Manager - Quantitative and Qualitative ResearchFixed Term, Full Timeup to £69,262 per annumLocation
Recuriter: Essex County Council

Research Strategy and Governance Manager

Essex County Council
Up to £70364 per annum
Research Strategy and Governance ManagerFixed Term, Full Timeup to £70,364 per annumLocation
Recuriter: Essex County Council

Levelling Up External Communications Adviser

Essex County Council
£38977 - £41624 per annum
Levelling Up External Communications Adviser12 Month Fixed Term, Full Time/Part TimeUp to £41,624 per annumLocation
Recuriter: Essex County Council

Light Vehicle Mechanic

Derbyshire County Council
£27,507 - £29,418
We are looking for a highly motivated Light Vehicle Mechanic to join our County Transport team County Transport – Ambergate Workshops
Recuriter: Derbyshire County 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.