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 Reward Consultant

Essex County Council
£60469.0000 - £71140.0000 per annum
Senior Reward ConsultantPermanent, Full Time£60,469.00 to £71,140.00 per annum Location
Recuriter: Essex County Council

Director of Resources

Dartmoor National Park Authority
£71,288 - £77,905 per annum
Dartmoor National Park Authority is the body that oversees the vibrant, living, working landscape and communities of Dartmoor National Park. Devon
Recuriter: Dartmoor National Park Authority

Business Relationship Manager

Essex County Council
£62461 - £73483 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK. This vacancy England, Essex, Chelmsford
Recuriter: Essex County Council

Social Worker - Disabled Children's Service

North Yorkshire Council
£38,220 - £42,839 per annum
As a Social Worker within the Disabled Children’s Service, you will play a vital role in a supportive and experienced specialist team Selby, North Yorkshire
Recuriter: North Yorkshire Council

Children and Families Worker – Multi Agency Screening Team (MAST)

North Yorkshire Council
£32,578 - £35,570
You will work directly with children, young people, and their families. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner