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

Executive Director of Transport

Cambridgeshire & Peterborough Combined Authority
£128,216 – £156,241
Getting Cambridgeshire and Peterborough Moving Cambridgeshire
Recuriter: Cambridgeshire & Peterborough Combined Authority

Assistant Director – Children and Families

Sheffield City Council
£80,995 - £86,757
Our promise to Sheffield’s children and young people is that Sheffield will be a place where they belong, Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Assistant Director of City Transport

Sheffield City Council
£ to match our ambition
You’ll keep abreast of emerging approaches and best practice Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Director Of Growth

Royal Borough of Greenwich
up to £185,000
The Royal Borough of Greenwich is synonymous with iconic London landmarks, culture and outstanding service delivery. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Strategic Director of Resources

London Borough of Waltham Forest
CIRCA £180,000
We are now in a strong position to move forward with confidence. Waltham Forest, London (Greater)
Recuriter: London Borough of Waltham Forest
Linkedin Banner