William Eichler 03 December 2019

Party commitments on council funding ‘starkly’ different, think tank says

The money allocated to local government in the Conservative manifesto would not be enough to meet rising costs and demands over the next parliament, think tank says.

The Institute for Fiscal Studies have analysed what the manifestos of the main political parties – Conservatives, Labour, and Liberal Democrats – mean for local authority funding.

They concluded that Tory funding commitments would not cover the increasing costs and demands expected at the local level, even if council tax were increased by 4% a year.

A study of English local government funding from the IFS last month found that budgeted revenues to cover day-to-day spending in 2019–20 will be approximately 18% lower in real-terms than in 2009–10. This equates to cuts of 24% per resident once population growth is taken into consideration.

The study also found that these cuts have varied ‘significantly’ across the country.

Councils’ spending on local services has fallen around 31% in the most deprived areas, according to the IFS, compared to 16% in the least deprived areas.

Labour has allocated ‘more than enough’ money to meet rising costs and demands, according to the IFS’ associate director and author of the analysis, David Phillips, allowing increases in service provision and quality.

However, Labour’s funding commitments would not restore local government funding to 2010 levels.

The Liberal Democrats have allocated enough money to meet rising costs and demands if council tax is increased by 2% a year. This would, however, require some of the funding earmarked for bus services, youth services or homelessness to be used to meet these pressures.

‘Taken together, the differences between what the parties propose for local government funding are stark. This reflects manifestos that more generally set out vastly different futures for the country,’ concluded Mr Phillips.

‘But all three main parties have unfunded commitments on adult social care spending – suggesting this will be an important and potentially problematic issue whoever forms the next Government.’

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Caretaker

Durham County Council
£24,796 (Pro Rata)
Permanent Contract – Part Time - 32 Hours per week (6am – 9.15am 3pm – 5.45pm) Mon-Fri. Whole Time. Required to start 20th October 2026.   The Governo Consett
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 – Pre-Progression (£35,412-£39,152 per annum) / Grade 11 – Post Progression (£40,777-£45,091 per annum). Pay award pending.
We are seeking to recruit two temporary (six month) full-time (37 hours per week) Social Workers, to join our Adult Social Work Team at Derwentside Lo Durham
Recuriter: Durham County Council

Head of Finance - Children & Young People’s Service

Rotherham Metropolitan Borough Council
£75,585 - £80,726 (pay award pending)
This is a great place to work for people who want to make a real difference. Riverside House, Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Head of Finance and Accountancy (Deputy S151 Officer)

Chesterfield Borough Council
£72,000 (inclusive of Market Supplement)
In this role, you will provide visible leadership and management across the Finance Service Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council

Director of Digital, HR & Customer Services

Chesterfield Borough Council
£97,017
Reporting directly to the Deputy Chief Executive, you will lead a diverse directorate, with responsibility for Human Resources Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council
Linkedin Banner