Jonathan
Carr-West, Chief Executive of
LGIU, said:
“The Chancellor’s budget proved more generous than expected for
many.
Local government will be pleased that a key sector demand has
been listened to as we finally have a multi-year settlement that
allows for better long term planning for councils.
Grant increases of £1.6bn per year for the next three years and a
3% increase in core spending power, do not undo a decade of cuts
but they are a step in the right direction. However, we should
never forget that this 3% increase depends on councils taking the
political risk of increasing council tax to the maximum permitted
extent.
Social care costs will continue to rise, especially given the
announcement of an increase in the minimum wage. That will eat
into most, if not all, of a 3% increase in spending power. And,
it’s still far from clear when the benefit of national insurance
contribution increases will be felt across social care.
The wait continues for the Government’s much anticipated
Levelling Up White Paper. And, for those who believe that
levelling up can only succeed in partnership with local
government, there was little grounds for optimism in this budget
which continues to be allocated through bid funding and regional
and sub regional authorities getting the largest chunks of it.
After over a decade of austerity, local government has learned to
take nothing for granted and to read the small print very
carefully. Nonetheless, a sector that was braced for more pain
will be feeling this afternoon that things could have been
worse.”
