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

Senior Product Support Analyst

Essex County Council
£33512.0000 - £39425.0000 per annum
Senior Product Support AnalystPermanent, Full Time£33,512 to £39,425 per annum Location
Recuriter: Essex County Council

Independent Reviewing Officer

Essex County Council
£46574.0000 - £56027.0000 per annum
Independent Reviewing OfficerPermanent, Full Time£48,205 to £57,988 per annumLocation
Recuriter: Essex County Council

Social Worker - Children and Families Hub

Essex County Council
£37185.0000 - £50081.0000 per annum
Social Worker - Children and Families HubPermanent, Full Time£37,185 to £50,081 per annumLocation
Recuriter: Essex County Council

Library Manager Service Development

North Yorkshire Council
£51,356 - £55,539
Are you passionate about the future of public libraries and the role they play at the heart of communities? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85 - £13.47
Do you have some spare time in the morning and/or afternoon? Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner