Laura Sharman 18 February 2016

Local government finance in a ‘mess’ warns survey

Nearly nine in ten councils will have to increase council tax and start charging for services in a bid to balance the books, according to the results of a new survey.

The 2016 State of Local Government Finance survey, conducted by our sister title The MJ in partnership with the LGiU, also found that 82% of councils will be forced to use reserves to make ends meet.

While nearly all councils that are eligible are planning on implementing the 2% social care precept, three-quarters of those surveyed said the extra money will not be enough to close the funding gap in adult social care.

Jonathan Carr-West, chief executive of LGiU, said: ‘Local government finance is a mess. Our research shows that right now councils are cobbling together their finances by using reserves and increasing charging wherever they can.

‘The system we have now is one which no one would design. Central government and local authorities both want to see a sustainable independent funding model. But until we answer fundamental questions about how to make this work, devolution will be a process rather than a revolution.’

The research also found that while six out of ten councils believe they can be financially self-sufficient by 2020, this will only happen if local government is given more powers over charging, trading and raising local taxes.

Heather Jameson, editor of The MJ, added: ‘Town halls want to be self-financing, but they need the tools to do so – and they need to be free of Whitehall diktat. Local government needs to be free to charge and trade and control its own income.

‘The Government talks a good game when it comes to devolution, but let’s see them put their money where their mouth is and sort out local government finances.’

For a full analysis of the results click here (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Key Worker - Young Carers

Essex County Council
Up to £28621.00 per annum
Key Worker - Young CarersPermanent, Full Time£28,621 per annumLocation
Recuriter: Essex County Council

Head of Service - Highways and Transportation

North East Lincolnshire Council
£77,899
We are seeking an exceptional leader to take on the role of Head of Service – Highways & Transportation North East Lincolnshire
Recuriter: North East Lincolnshire Council

Director of Education

Birmingham City Council
£135,398 to £175,519 (3 days per week on site)
Leading Collaboration. Strengthening Trust. Improving Outcomes Birmingham, West Midlands
Recuriter: Birmingham City Council

Executive Director of Prosperity and Place

East Riding of Yorkshire Council
£148,775 - £159,480
We are seeking an exceptional Executive Director of Prosperity and Place East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152(Pre-Progression) / Grade 11 £40,777 - £45,091(Post-Progression)
This is an exciting opportunity to join the Next Steps Team in Durham, a developing and ambitious service that prepares young people in care for indep Durham
Recuriter: Durham County Council
Linkedin Banner