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 Place

Hounslow London Borough Council
£159,840 - £186,282
We are now seeking a new Executive Director of Inclusive Growth & Place to lead this bold agenda Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Revenue Services Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£28377 - 36969 per annum
We have a vacancy in our Rent Collection Service and are looking for a capable and ambitious individual to join Richmond and Wandsworth Council’s Better Service Partnership. You will be a team player, articulate and organised and help play a central rol Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Benefits Assessment Officer

West Northamptonshire Council
£34203 - £37067
Join West Northamptonshire Council and help make our community a great place to live, work, and thrive. As a Benefit Assessment Officer, you’ll play a vital role in supporting residents by ensuring Housing Benefit and Council Tax Reduction claims are pr Northampton
Recuriter: West Northamptonshire Council

Head of Facilities Management

Redbridge London Borough Council
£89,037 - £92,538
Our borough is beginning a huge transformation. With ambitious regeneration plans, a need for new infrastructure, Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Protection, Licensing and Regulatory Services

Redbridge London Borough Council
£competitive
This is your chance to be part of a new management team with a mandate for change and a shared sense of purpose. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner