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

Chief Legal Officer

Sandwell Metropolitan Borough Council
£101,275 - £117,266
We are now seeking an exceptional legal leader to join us as Chief Legal Officer. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Major Events Manager

Powys County Council
£49817 - £51928
This is an exciting opportunity to lead Powys County Council's preparations for three major events in 2027 Llandrindod Wells, Powys
Recuriter: Powys County Council

Debtors and Collection Officers

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
This is an exciting opportunity to join a dynamic and ever-changing revenues environment. You’ll have the chance to develop your skills, gain valuable Spennymoor
Recuriter: Durham County Council

Higher Level Teaching Assistant X 2

Durham County Council
£33,673 - £37,563
Permanent Contract – Full Time, 37 hours per week Term Time Only plus 2 weeks Required to start as soon as possible.   The Woodlands is County Durham’ Ferryhill
Recuriter: Durham County Council
Linkedin Banner