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

Customer Service Assistant

Essex County Council
Up to £25081.00 per annum
Customer Service AssistantPermanent, Part Time - 18.5 hours£25,081 per annum, pro rataLocation
Recuriter: Essex County Council

Director of Place

West Oxfordshire District Council
£95,202-£104,722 per annum
West Oxfordshire District Council is seeking an exceptional and forward-thinking Director of Place Witney, Oxfordshire
Recuriter: West Oxfordshire District Council

Business Engagement Coordinator

Middlesbrough Council
£39,152 - £40,777
We have an exciting role on offer within our Community Learning Service as a Business Engagement Coordinator. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Audit & Risk Apprentice

Kirklees Metropolitan Council
£12.42 per hour
As an Internal Audit & Risk Apprentice, no two days are the same. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Housing Officer (Employment & Wellbeing)

Kirklees Metropolitan Council
£17,217 to £18,640
Kirklees Homes & Neighbourhoods is responsible for almost 23,000 homes across Kirklees. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner