William Eichler 11 February 2019

Spending Review ‘make or break’ for cash-strapped councils

Local government leaders have warned the Chancellor that the upcoming Spending Review will ‘make or break’ over-stretched council services.

New research from the Institute for Fiscal Studies has revealed that Philip Hammond will need to find an extra £5bn by 2023-24 to spare further cuts to public services.

Drawing on the Treasury’s provisional plans in the Autumn 2018 budget, the think tank estimated that departments, excluding health, defence and aid, face more cuts under the Government’s spending plans.

This will be on top of the £40bn they have endured since 2010.

The scale of the cuts to come would be much smaller than those already implemented, with cuts for unprotected departments averaging 0.4% per year going forwards compared to 3% a year over the period since 2010.

Ben Zaranko, a research economist at the IFS, said the think tank’s findings ‘suggest yet more years of austerity for many public services – albeit at a much slower pace than the last nine years.’

In response to the IFS report, Cllr Richard Watts, chair of the Local Government Association’s Resources Board, said that local government in England faces an overall funding gap of £8bn by 2025.

‘The Spending Review will therefore be make or break for vital local services and securing the financial sustainability of councils must be the top priority,’ he warned.

‘If the Government fails to adequately fund local government in the Spending Review then there is a real risk to the future financial viability of some services and councils,’ Cllr Watts continued.

‘Councils were at the front of the queue when austerity started so local services should be at the front of the queue if it is coming to an end.

‘Fully funding councils is the only way to ensure they can continue to provide all of the valued local services which make such a positive difference to people’s lives.

‘It will also save money for the taxpayer and others part of the public sector, such as the NHS.’

Image: Sovastock / Shutterstock.com.

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

Chief Executive

Camden Learning
Competitive
Camden Learning is a pioneering schools-led partnership bringing together 57 schools. Camden, London (Greater)
Recuriter: Camden Learning

Key Worker - Young Carers

Essex County Council
£25959.0000 - £28621.0000 per annum
Key Worker - Young CarersFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Teaching Assistant

Durham County Council
£26,427 pro rata
Temporary from October 26 to August 27. Villa Real School is an all age 2 to 19 years Special School with pupils with SLD, PMLD and Autism. The Gove Consett
Recuriter: Durham County Council

Care Facilitator

Durham County Council
Grade 6 - £29,071 - £32,046
We are looking to appoint a temporary Care Facilitator to be responsible for negotiating and arranging appropriate packages of care for individual ser Spennymoor
Recuriter: Durham County Council

Senior Practitioner Access to Records

Durham County Council
Grade 12 - £45,529 - £49,817
Are you an experienced social worker looking to make a difference in a different way? Do you want to use your professional expertise, judgement and u Spennymoor
Recuriter: Durham County Council
Linkedin Banner