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

Programme Director - North London Heat and Power Project

North London Waste Authority
£165,000 + bonus
We are seeking an exceptional Programme Director to lead the final delivery, commissioning and transition into operation of this landmark project. London (Greater)
Recuriter: North London Waste Authority

Executive Director of Prosperity and Place

East Riding of Yorkshire Council
£153,685 - £164,743
You will shape and deliver bold priorities that enhance quality of life, strengthen infrastructure, support inclusive economic growth Beverley, East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Head of safeguarding and quality assurance - Adults

Knowsley Metropolitan Borough Council
£87,117 to £93,978 per annum
As Head of Service, you will have the opportunity to make a significant impact on the lives of adults who access support from our services. Knowsley (Metropolitan borough), Hybryd Working
Recuriter: Knowsley Metropolitan Borough Council

Director of City Infrastructure

Brighton & Hove City Council
circa £125,000
There are few places like Brighton & Hove Brighton & Hove
Recuriter: Brighton & Hove City Council

Family Worker (Link Role) - 12 month Fixed Term Contract

Essex County Council
£33049.00 - £37698.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Fixed Term, Full Time£33,049 to £37,698 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner