Austin Macauley 01 September 2015

Spending review must tackle £10bn of unfunded council costs

Councils will face around £10bn of unfunded costs over the next five years, according to analysis by the Local Government Association (LGA).

The LGA said local authorities could not be expected to ‘pick up the bill for new national policies while being handed further spending reductions’.

It has urged chancellor George Osborne to take account of these added pressures ahead of November’s spending review.

Exempting house builders from Section 106 and Community Infrastructure Levy payments for 200,000 new starter homes will see councils lose £3bn during this parliament. Combined with cuts to social housing rents, rising business rates appeals from 2017, the National Living Wage and other changes it will cost councils £6.3bn by 2020.

That comes on top of £3.6bn of added costs due to inflation and rising demand.

LGA chairman Cllr Gary Porter said November's spending review would be ‘critical for the future of our public services’.

‘Leaving councils to pick up the bill for new national policies while being handed further spending reductions cannot be an option,’ he said.

‘Enormous pressure will be heaped on already stretched local services if the Government fails to fully assess the impact of these unfunded cost burdens when making its spending decisions for the next five years. Vital services, such as caring for the elderly, protecting children, collecting bins, filling potholes and maintaining our parks and green spaces, will simply struggle to continue at current levels.

‘We need the decisions in the spending review to be guided by the fundamental principle that local people will know best how to spend money on services in their area.

‘If our public services are to survive the next five years, councils need fairer funding and the freedom to pay for them. Only radical reform of the way public money is spent and widespread devolution of transport, housing, skills and health and social care across England in the spending review can protect the services which bind our communities together and protect our most vulnerable.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Civil Enforcement Officer

North Yorkshire Council
£26,847- £28,153
You will play a vital role in supporting local communities and visitors across North Yorkshire. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Operations Assistant

North Yorkshire Council
£28,153 - £30,023 per annum
In this role, you will support the Operations Officer to deliver high-quality, dependable passenger transport across Harrogate. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Undergraduate Placement – Transport

North Yorkshire Council
£25,614 - £26,847 per annum pro rata
You'll work alongside experienced professionals, contribute to live projects and develop valuable technical and professional skills Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Civil Enforcement Officer

North Yorkshire Council
£26,847- £28,153
You're looking for a new challenge, a career change, or your first step into local government Skipton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner