Laura Sharman 09 September 2019

Local government faces £25bn funding shortfall by 2025

Local government faces £25bn funding shortfall by 2025 image

Local councils will face a £25bn funding gap by 2025 as funding reforms will shrink government grants to almost zero, a new report has argued.

The report, published by the TUC and New Economics Foundation (NEF), warns ringfenced grants will account for less than 9% of local authority expenditure by 2025.

Although councils will be able to retain a higher proportion of business rates, this will leave them more exposed to the economic harm expected from a no-deal Brexit, it argues.

It also found that poorer areas are at greater risk of funding shortfalls as they face a bigger challenge in increasing business rate growth.

TUC general secretary, Frances O’Grady, said: ‘This government’s changes to how councils are funded leaves a colossal hole in local budgets. And it’s the poorest communities that will face the biggest shortfalls.

‘We need a local government funding system that helps rebuild local services and closes the funding gap between poorer and richer areas.’

Time for a council tax precept to fund CCTV image

Time for a council tax precept to fund CCTV

The crisis in funding for CCTV systems is not being addressed by the government or the police and is leading to the curtailment of this vital service in local authorities across the country. How can we ensure that communities that want this service continue to receive it, asks Tom Reeve.
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