Ellie Ames Thursday, December 19, 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

Director of Highways, Waste and Environment

North Northamptonshire Council
£97,632 - £108,033 (subject to additional pay award)
North Northamptonshire is a place of scale, ambition and ongoing transformation. Northampton, Northamptonshire
Recuriter: North Northamptonshire Council

Director of Public Health & Leisure

Brent Council
£135,000
Brent is brimming with ambition and opportunity. Brent, London (Greater)
Recuriter: Brent Council

Head of Property & Regeneration

Swansea Council
£88,633 - £100,994
We are seeking to appoint an outstanding and experienced professional Swansea (Abertawe)
Recuriter: Swansea Council

Strategic Director – Adults and Public Health

Ealing London Borough Council
£180k
We are looking for an ambitious, visible and collaborative leader who can help shape the future of adult social care Ealing, London (Greater)
Recuriter: Ealing London Borough Council

Service Directors - Inclusive Education, Family Help and Skills

Shropshire Council
£107k - £112k
Over recent months, we’ve moved from announcing a financial emergency into a period of recovery. Shropshire
Recuriter: Shropshire Council
Linkedin Banner