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

Head Teacher

Durham County Council
£67,898- £78,702
Permanent position- Full Time.   Required for 1 January 2027.  The Governors seek to appoint a committed, experienced and enthusiastic teacher with se Durham
Recuriter: Durham County Council

Applications and Development Officer

Durham County Council
£28,142 to £31,022 p.a. Pay Award Pending
A vacancy has arisen within our Microsoft 365 Team, part of Applications and Development, for an enthusiastic, customer-focused and flexible Applicati Durham
Recuriter: Durham County Council

Higher Level Teaching Assistant

Durham County Council
£30,024 - £33,699 (Pro Rata)
Fixed Term Contract until 31st August 2027 Full Time- Term Time plus 2 weeks Required to start 1st September 2026   The Governors seek to appoint an i Durham
Recuriter: Durham County Council

Best Start Inclusion Practitioner (SEND)

Durham County Council
£28,142 - £31,022 Grade 6 (Pay Award Pending)
We are looking for enthusiastic and committed practitioners to join our new Best Start Inclusion Team, supporting children aged 0–5 years with emergin Durham
Recuriter: Durham County Council

Administrative Assistant

Durham County Council
£24,796 - £25,185 (Pro Rata)
Temporary post for one year from start. Required to start as soon as possible.   The Woodlands are seeking to recruit an Administrative Assistant who Ferryhill
Recuriter: Durham County Council
Linkedin Banner