Responding to the Treasury announcement that it will conduct a
one-year Spending Review in November, Cllr James Jamieson,
Chairman of the Local Government Association, said:
“It is hugely disappointing that councils will only get a
one-year funding settlement for the third year in a row. This
makes it incredibly difficult for them to plan how to provide
local services our communities rely on and which have proved so
vital during the pandemic, including public health, adult social
care, children’s services, homelessness support, and help for
those in financial hardship.
“This is a missed opportunity for the Government to draw a line
under inefficient short-term budgeting, that leads to higher
costs to the public purse, and to allow councils to set reliable
medium-term financial strategies. Only with sustainable and
certain long-term funding can councils protect and improve
services and play a leading role in addressing the stark
inequalities the pandemic has exposed, developing a green
recovery, tackling skills gaps and rebuilding the economy so that
it benefits everyone.
“We urge the Government to publish this Spending Review as soon
as possible as the end of November is incredibly late for
councils to find out how much money they will have to provide
services next year. Councils will face a £4 billion funding gap
next year just to keep services running at today’s levels and
need urgent certainty about how to set budgets and to plan any
measures they may be forced to take to cut spending. Before the
Spending Review is announced, the Government must confirm that
the resources councils have this year will not reduce and there
will be no business rates reset next year.
“Many councils were in a difficult financial position before the
pandemic hit after a decade of central government funding
reductions. They will continue to face demand pressures on
day-to-day services - some pre-existing and others made more
significant by the impact of COVID-19 – amid substantial income
losses, such as from local taxation, fees and charges.
“The Government has provided some much-needed support but
significant challenges remain. It is vital that the Government
addresses in full the financial challenges facing councils as a
result of COVID-19, including all lost income and local tax
losses, and provides further investment so councils can protect
and improve local services next year.”
