Ellie Ames 19 December 2024

Cuts warnings after finance settlement announced

Cuts warnings after finance settlement announced image
Image: Volha_R / Shutterstock.com

The bodies representing district and county councils have warned that services will be cut next year after the provisional Local Government Finance Settlement was published yesterday.

The Government has announced £69bn for English councils next year, which it said represented a 3.5% real terms increase in core spending power.

But the settlement would mean ‘much larger’ increases in funding for councils serving more deprived and more urban areas than for those serving more affluent and more rural parts of England, according to the Institute for Fiscal Studies (IFS).

The think-tank said the settlement represented a real-terms spending cut for most (132) shire district councils, although their funding will ultimately increase next year because of the extended producer responsibility scheme for packaging.

The District Councils’ Network’s finance spokesperson, Jeremy Newmark, warned that ‘for many communities some services will be cut’.

The County Councils Network (CCN) also said its member councils would have to cut services, adding that the provisional settlement would put them in a worse position than before the Autumn Budget.

It said the Government’s deprivation-based formula for allocating the £600m ‘recovery grant’ meant more than half of the cash would go to 34 metropolitan boroughs, while just three county and rural councils would benefit.

Finance spokesperson Barry Lewis said yesterday: ‘The CCN wants to see the evidence that backs up ministerial decisions to target funding so specifically.

‘With our previous analysis showing county authorities have a larger funding gap than metropolitan boroughs next year, our councils deserve a fairer share of the resources announced today.’

Stephen Houghton, chair of the Special Interest Group of Municipal Authorities (SIGOMA), said: ‘This is a fair settlement for councils that will provide welcome relief to the most deprived areas after a decade of disproportionate cuts and increases in demand.’

SIGN UP
For your free daily news bulletin
Highways jobs

Virtual School Advisory Teacher

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
Virtual School Advisory Teacher
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Business Architect

Essex County Council
£60049 - £70645 per annum + Hybrid working, Flexible working
Please note this vacancy is available as a fixed term contract or secondment opportunity for up to 12 months.Join a Council Shaping the Future of Pub England, Essex, Chelmsford
Recuriter: Essex County Council

Electrical Manager

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take on a pivotal leadership role in managing electrical systems across Derbyshire’s highway network? Derbyshire
Recuriter: Derbyshire County Council

Senior Service Product Manager

North Yorkshire Council
£47,181 - £51,356 per annum
Do you have experience in product management are looking to build your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner