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

Assistant Director – Property

Borough Council of King's Lynn and West Norfolk
up to £89,371
Shape the future of our borough. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk

Chief Operating Officer

Borough Council of King's Lynn and West Norfolk
up to £126,615
Shape the future of our borough. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk

Digital Forensic Analyst

North Yorkshire Council
£27,254 to £42,839
Do you work in the field of digital forensics or are you looking to start a career in the field? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Local Land Charges Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
Depending on Skills Knowledge and Experience
Job Title Local Land Charges O... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

CIL and S106 Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
Starting Salary from £37,602 pa based on skills,
CIL and S106 Officer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner