Thomas Bridge 25 November 2015

Spending Review: Osborne pushes councils to ‘draw on reserves’

George Osborne has urged councils to ‘draw on reserves’ to improve local services, while gifting greater freedom over asset sales.

Delivering his Spending Review and Autumn Statement, the chancellor announced local authorities would be able to keep hold of all funds raised through the sale of assets to improve local services.

‘Local government is sitting on property worth quarter of a trillion pounds,’ he said.

‘So we’re going to let councils spend 100% of the receipts from the assets they sell to improve their local services.’

Citing figures from the Department for Communities and Local Government claiming councils had increased their reserves by almost £10bn over the past parliament, Mr Osborne said he would now ‘encourage’ local authorities ‘to draw on these reserves as they undertake reforms’.

His comments mirror those made last week by communities secretary Greg Clark, reflecting a united government stance on the use of council reserves in the face of warnings from the Local Government Association.

‘If you take into account both the fall in grant and the rise in council incomes, it means that by the end of this Parliament local government will be spending the same in cash terms as it does today,’ Mr Osborne added.

He added that councils were receiving ‘a big package of new powers, but also new responsibilities’.

‘It’s a revolution in the way we govern this country,’ Mr Osborne told the Commons.

SIGN UP
For your free daily news bulletin
Highways jobs

Adult Social Worker Mental Health

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Mental Health Social Worker
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Director of Finance (Deputy Section 151 Officer)

Royal Borough of Kingston upon Thames Council
up to salary max £121,445 per annum
We are now seeking a Director of Finance and Deputy Section 151 Officer to play a pivotal role Hybrid / Kingston Upon Thames
Recuriter: Royal Borough of Kingston upon Thames Council

Principal Engineer - Adoptions

West Northamptonshire Council
£49,587 - £52,860
We are seeking an experienced and motivated Principal Highways Engineer to join our Highways Development Management team at West Northamptonshire Council. This is a senior role leading on the assessment, negotiation, and delivery of highway works linked t Northampton
Recuriter: West Northamptonshire Council

Head of Highway Operations

Derbyshire County Council
Grade 15 £63,002 - £69,103 per annum
As we begin to implement our new structure, we have an exciting leadership opportunity as the head of our new operations service. Derbyshire
Recuriter: Derbyshire County Council

Trainee Roadworker Driver

Derbyshire County Council
Grade 5 £25,185 - £25,583 per annum
We’re looking for Roadworker/trainee LGV drivers to be part of our team undertaking all aspects of highways maintenance and improvement works Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner