Laura Sharman 26 November 2020

Spending Review: 'Risk all sits on local government'

The Spending Review failed to tackle key issues such as reforms to local government funding, sector experts have warned.

The Local Government Information Unit (LGiU) said the 4.5% increase in spending power for local government would come predominantly from council tax increases and the social care precept.

‘The political and economic risk all sits on local government,’ said Jonathan Carr-West, chief executive of LGIU. ‘There is no gift from the centre.’

The Local Government Association (LGA) also warned that any increase in council tax would place a ‘significant’ burden on households.

Cllr James Jamieson, chairman of the LGA, said: ‘Council tax rises – particularly the adult social care precept – have never been the answer to the long-term pressures faced by councils, particularly in social care, raising different amounts of money in different areas, unrelated to need. It is not the long-term solution which is desperately needed.

’We have warned about record numbers already claiming a discount on their council tax due to the pandemic and are pleased the Government will provide funding to help councils provide vital support for those on low incomes who may struggle to pay.’

Karen Sanderson, director of public financial management at CIPFA, said: ‘While the statement was flush with cash in some areas, others were considerably lacking. A 4.5% increase in spending power for local authorities will be absorbed by increased social care costs off the back of the pandemic, and higher costs from the rise to the national minimum wage.

’This announcement also did nothing to address key structural issues, including reform to local government funding and social care.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner