Laura Sharman 18 February 2016

Local government finance in a ‘mess’ warns survey

Local government finance in a ‘mess’ warns survey image

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 (£).

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Housing Officer x 2 vacancies

Dover District Council
£20,102- £23,077
We are looking to recruit dynamic, skilled and high performing individuals who share our commitment to delivering excellence Dover, Kent
Recuriter: Dover District Council

Estate Assistant x 2 vacancies

Dover District Council
£17,890 - £20,037
We are looking to recruit dynamic, skilled and high performing individuals who share our commitment to delivering excellence Dover, Kent
Recuriter: Dover District Council

Surveyor – Planned works

Dover District Council
£34,924 - £40,746 (pro-rated for part time post)
We are looking to recruit dynamic and skilled individuals who share our commitment to delivering excellence Dover, Kent
Recuriter: Dover District Council

M&E Engineer

Dover District Council
£34,924 - £40,746
We are looking to recruit dynamic and skilled individuals who share our commitment to delivering excellence Dover, Kent
Recuriter: Dover District Council

Speech and Language Therapist - Hambleton & Richmondshire

North Yorkshire County Council
£32,029 - £34,788
We are looking for Speech and Language Therapists to join our Inclusion team across North Yorkshire. North Yorkshire
Recuriter: North Yorkshire County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue