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

Service Manager - Care Leavers

Cheshire East Council
£54,994 per annum - £62,777 per annum
We're looking for an experienced and passionate Service Manager to join Cheshire East Council. Location TBC
Recuriter: Cheshire East Council

SEND Plan Writer

Cheshire East Council
£31,537 - £34,434
We're looking for a dedicated SEND Plan Writer to join Cheshire East. Macclesfield, Cheshire
Recuriter: Cheshire East Council

Independent Reviewing Officer

Cheshire East Council
£42,072 - £54,994
Make a difference for children in care Macclesfield, Cheshire
Recuriter: Cheshire East Council

Occupational Therapy Lead

Gloucestershire County Council
£48,226 - £51,356 per annum
Are you passionate about supporting adults to live independently and achieve what matters most to them? Gloucestershire
Recuriter: Gloucestershire County Council

Adult Education Director

City Of Doncaster Council
DR1 £45,564 to DR8 £52,209
We are seeking an experienced and inspirational Further Education leader Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner