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

Residential Assistant - ASC

Essex County Council
£25081.0000 - £25395.0000 per annum
Residential Assistant - ASCPermanent, Part Time£25,081 up to £25,395 per annum Location
Recuriter: Essex County Council

Consultant Social Worker - Frontline

Durham County Council
Grade 13 - £47,181 - £51,356
Are you an experienced children and families social worker keen to help develop the next generation of social workers in Durham?   Are you passionate Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 11 - £40,777 - £45,091
Applications are invited for a Social Worker within the Easington Locality Team. WHAT IS INVOLVED? Are you a compassionate and dedicated Social Work Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,796 pro rata
Lunchtime Supervisor Grade 1, £24,796 pro rata Permanent, term time only, 10 hours per week 11.40 – 1.40 Monday to Friday Required from 11/05/2026   P Durham
Recuriter: Durham County Council

Specialist Autism Pathway Lead

Durham County Council
£42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787
Specialist Autism Pathway Lead M5- UPR3 TLR2b with 1 SEN point- £42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787 Permanent- Monday 8.45 – 4.30pm Tu Durham
Recuriter: Durham County Council
Linkedin Banner