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 Pensions

Hertfordshire County Council
£84,421 to £93,565 plus benefits and relocation support
Welcome and thank you for your interest in leading Hertfordshire Pension Fund as our next Head of Pensions Stevenage, Hertfordshire
Recuriter: Hertfordshire County Council

Tutor & Holistic Educator (Suffolk, Norfolk & Essex) - Lapwing

Essex County Council
£27430.0000 - £42084.0000 per annum + Term time
Tutor & Holistic Educator (Suffolk, Norfolk & Essex) - Lapwing EducationExternal OrganisationPermanent, Full Time£27,430 - £42,084 depending on skills England, Essex, Chelmsford
Recuriter: Essex County Council

Skills & Development Coach (Suffolk, Norfolk & Essex) - Lapwing

Essex County Council
£24375 - £35257 per annum + (term time only)
Skills & Development Coach (Suffolk, Norfolk & Essex) - Lapwing EducationExternal OrganisationPermanent, Full Time£24,375 - £35,257 depending on skill England, Essex, Chelmsford
Recuriter: Essex County Council

Graduate Highways Engineer

West Northamptonshire Council
£31,324 - £33,017
This is a fantastic opportunity to begin a career that shapes the way communities grow and move. We’re looking for a motivated, analytical, and curious individual to join our Highways Development Management team at West Northamptonshire Council Northampton
Recuriter: West Northamptonshire Council

Graduate Trainee - Procurement

Essex County Council
£28090.00 - £33047.00 per annum
Graduate Trainee - ProcurementFixed Term, Full Time£28,090 up to £33,047 per annumLocation
Recuriter: Essex County Council
Linkedin Banner