Commenting on the Provisional Local Government Finance
Settlement, Cllr , DCN Spokesperson for
Finance & Investment said:
“This has been a period of unprecedented challenge for local
council finances, with many councils still facing significant
financial pressures nearly two years on from the start of the
pandemic. District councils have been hardest hit and have been
striving to balance higher costs with shrinking income streams.
This balancing act will only get harder as we move into Plan B
and a very difficult winter ahead.
“A stable financial foundation is critical for us to continue
delivering the excellent frontline services our communities
rightly expect. These are highly visible services that matter to
every resident and every business in our areas. We also want to
play a leading part in levelling up the country and we are
ambitious about delivering net zero.
“That’s why we’ve been calling for a fair share of the additional
£1.6 billion per year announced in the Spending Review, steps to
preserve our existing funding from the New Homes Bonus and
retained business rates, and additional flexibilities on council
tax.
“Coming on top of ten years of funding cuts, this provisional
funding settlement is a step forward. We welcome the
one-off services grant and the preservation of current New Homes
Bonus funding and the Lower Tier Services Grant. This will cover
some of the inflationary pressures we face. But it’s
disappointing that the settlement hasn’t given us the extra
council tax flexibilities we need.
“Altogether the settlement won’t be enough to meet the full
weight of demands we’ll face over the next year. There are still
funding gaps for Covid costs, leisure services and homelessness.
And it doesn’t provide the funding or flexibility we need to
invest in jobs, regeneration and net zero. That’s why we’re
calling for the final settlement to allocate more money to
district councils on top of what’s already been announced for the
whole local government sector.
“Districts also need longer-term certainty. That’s why we want to
work with the Government to ensure our councils don’t lose out
from longer-term funding reforms and to explore opportunities to
diversify our income base.”
