Responding to the Spending Review, Cllr James Jamieson, Chairman
of the Local Government Association, said:
“Council services have been critical in the fight against
COVID-19, protecting the most vulnerable, supporting our local
businesses and keeping the country running. It is good that
today’s Spending Review provides a potential increase of 4.5 per
cent in council core spending power to support these vital local
services. However, this assumes council tax bills will rise by 5
per cent next year which will place a significant burden on
households.
“It is good that the Chancellor has provided further funding for
councils to manage the cost pressures they face as a result of
the pandemic. New funding for adult and children’s social care
will also help address some - but not all - of the pressures
these services face next year. Councils will still have to find
savings to already stretched budgets in order to plug funding
gaps and meet their legal duty to set a balanced budget next
year.
“As we look to build back better from the devastating social and
economic impact of this crisis, this will be a blow to our
communities and will hamper local and national recovery efforts.
“Councils 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. The
Chancellor’s pledge to compensate for 75 per cent of
irrecoverable council tax and business rates income and to extend
the scheme to fund a portion of councils’ lost income from fees
and charges during the early part of the next year provides some
much-needed stability but will need to be kept under review and
probably extended.
“Council tax rises – particularly the adult social care precept –
have never been the answer to the long-term pressures faced by
councils, particularly in social care, raising different amounts
of money in different areas, unrelated to need. It is not the
long-term solution which is desperately needed.
“We have warned about record numbers already claiming a discount
on their council tax due to the pandemic and are pleased the
Government will provide funding to help councils provide vital
support for those on low incomes who may struggle to pay.
“Overall, the Spending Review provides some certainty for
councils next year but the long-term outlook remains unclear.
Public finances will undoubtedly be under huge strain in the
years ahead but investment in our local public services is
critical to our national recovery next year and beyond. Only with
the right funding and freedoms, can councils lead local efforts
to level up the stark inequalities the pandemic has exposed and
level up the economy so that it benefits everyone.”
