Responding to the 2019/20 Local Government Finance Settlement
consultation published today, including proposals to tackle
Negative Revenue Support Grant next year, Cllr , Chair of the Local
Government Association’s Resources Board, said:
“Many councils have been hugely concerned about the end of core
central government funding next year and having to pay vital
business rates income to the Government as a result of negative
Revenue Support Grant in 2019/20.
“Those affected will be pleased that the Government is taking
steps to address this issue next year. The LGA will be
encouraging all our member councils to respond to this
consultation.
“However, all councils face significant funding pressures and
huge financial uncertainty over the next few years and into the
next decade. Local government in England faces an overall funding
gap of almost £8 billion by 2025 just to maintain services at
current levels. The next Spending Review will be make or break
for local services and must recognise the urgent need to tackle
the funding gap facing local government to improve the lives of
residents and reduce pressure on other parts of the public
sector.
“We would urge the Government not to increase the New Homes Bonus
threshold again. This would risk putting the brakes on
housebuilding schemes and growth-boosting projects at a time when
our housing shortage is one of the biggest challenges facing the
nation and further exacerbate the financial challenges facing
some councils.”
NOTES TO EDITORS
- 1. The LGA has launched a campaign
ahead of the Spending Review to build the case for investment in
local services. Read our new report here.
