Securing the immediate sustainability of local services must be
the top priority for the Spending Review to avoid councils having
to find “disastrous” savings next year, the Local Government
Association says today.
Councils in England face a funding gap of £4 billion in 2021/22 –
just to maintain services at today’s levels.
The LGA, which represents councils across England, is urging the
Chancellor to provide local government with an extra £8.7 billion
in the Spending Review so councils can not only plug this gap but
meet demand pressures and improve services next year.
Public finances are undoubtedly under huge strain but councils
insist investment in local services is vital to our national
economic and social recovery.
The Government has provided additional funding to help councils
manage the impact of the COVID-19 crisis on their finances –
which has been invaluable.
But ahead of the Chancellor’s one-year Spending Review tomorrow,
the LGA said it would be a huge mistake for government to think
it will be enough to ensure councils get through this immediate
crisis unscathed.
LGA Chairman Cllr James Jamieson said:
“This year has been incredibly hard for our nation. This virus
has not only tragically claimed the lives of tens of thousands of
people but the true impact of the pandemic on wider health and
mental wellbeing has yet to become clear. It has devastated our
economy and exacerbated long-standing inequalities.
“Positive news about COVID-19 vaccines has provided a sense of
renewed optimism about the future and the prospect of our normal
way of life returning next year.
“As the focus shifts towards how we build back better, it would
be disastrous if councils are forced to find further major
savings to already stretched budgets next year and are choked off
from being able to act locally to restore local economies and
rebuild communities as a result.
"Now is not the time for the services our communities will turn
to for help to have to be drastically scaled back or lost
altogether.”
