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.’

LocalGov Weekly Round Up image

LocalGov Weekly Round Up

A pivotal week for councils sees fresh devolution plans, new service pilots and key legal and political battles, writes LocalGov editor William Eichler.
SIGN UP
For your free daily news bulletin
Highways jobs

Engagement Workers x 3 posts (CDC)

City Of Doncaster Council
Grade 5, £25,178 pro-rata
Doncaster Council are looking for 3 x Youth Engagement Workers to work in the Partnership & Engagement Team. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Adults Social Worker - Early Help & Wellbeing

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for a NQ England, Essex, Harlow
Recuriter: Essex County Council

Director of Policy, Strategy and Engagement

Rotherham Metropolitan Borough Council
Competitive
Rotherham is a borough with momentum and a clear plan for the future Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Procurement and Lettings Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 to £47,229 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Lawyer Planning and Highways

Durham County Council
£53,460 to £57,585 p.a. (Grade 15)
Due to expansion of the team, the Council is creating a dedicated Planning & Highways team and is looking for a Senior Lawyer to lead it. WHAT IS INV Durham
Recuriter: Durham County Council
Linkedin Banner