Mark Whitehead 31 March 2016

Extra costs force councils to ‘crunch point’

Extra costs, resulting from a double whammy of changes, are forcing councils towards ‘crunch point,’ council chief executives have warned.

The new National Living Wage (NLW) and changes to pensions will, according to the latest figures, cost the sector more than £1bn a year.

The NLW will cost at least £337m in 2016/17, the Local Government Association (LGA) has said, and changes to pension arrangements will add a further £797m annually.

The Society of Local Authority Chief Executives (SOLACE) warned that the viability of the sector’s financial model was being called into question as a result of the extra costs.

SOLACE director Graeme McDonald said: ‘The new NLW adds a significant new burden to local government, particularly in social care.

‘This is one of a bulging list of risks that bring into question the viability of our finance model as councils face a rising tide of costs.

‘Increasing demand, new government burdens and a narrowing income base means the sector is approaching crunch point.’

To read more on this, visit The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Early Years and Early Help

London Borough of Merton
£90,126 - £98,319
Merton is an Ofsted rated ‘Outstanding’ authority—yet it is our ambition, our humility, and our drive to keep learning that truly define us. Merton, London (Greater)
Recuriter: London Borough of Merton

Specialist Social Worker

North Yorkshire Council
£42,839 - £47,181
A welcome from the Corporate Director of Children and Young People Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Specialist Social Worker

North Yorkshire Council
£42,839 - £47,181
A welcome from the Corporate Director of Children and Young People Malton, North Yorkshire
Recuriter: North Yorkshire Council

Specialist Social Worker

North Yorkshire Council
£42,839 - £47,181
A welcome from the Corporate Director of Children and Young People Ripon, North Yorkshire
Recuriter: North Yorkshire Council

Specialist Social Worker

North Yorkshire Council
£42,839 - £47,181
A welcome from the Corporate Director of Children and Young People Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner