LGA statement on NAO report on local government finances

Responding to the National Audit Office report on local authorities' financial sustainability, Cllr Pete Marland, Chair of the Local Government Association's Economy and Resources Board, said:

“Councils in England face a funding gap of up to £8 billion by 2028/29. While they continue to innovate and transform services to deliver for communities and provide greater value for money, they desperately-need a significant and sustained increase in overall funding in the Spending Review to meet the requirements being placed on them.

“Without adequate funding, councils will continue to struggle to provide crucial services – with devastating consequences for those who rely on them - and it will be impossible for them to help the Government achieve its reform and growth agenda.

“The NAO rightly highlights that funding pressures are being exacerbated by a lack of reform which has weakened the financial sustainability of councils and left them with a complex, outdated funding system. Creating an improved and a more sustainable funding system for local government is also critical to strengthen the value for money of local spending and, most importantly, improve services for communities.”