Responding to the Spending Review, Cllr Louise Gittins, Chair of
the Local Government Association, which represents councils,
said:
“It is positive that the Spending Review delivers on some key LGA
asks. Funding announced for children's services and SEND support
will help more children get the right support and avoid reaching
crisis point. We are also pleased at increased investment in the
Affordable Homes Programme and the commitment to a 10-year rent
settlement, which will support councils to invest in maintaining
existing homes and ramping up vital new build programmes. Extra
investment in places to support regeneration, transport and
infrastructure is good news for residents and communities in
these places.
“We will analyse the detail to assess the full impact on councils
and communities. A recommitment to multi-year local government
funding settlements is essential for financial planning while
efficiency and innovation continues across local government.
However, all councils will remain under severe financial
pressure. Many will continue to have to increase council tax
bills to try and protect services but still need to make further
cutbacks. While government faced tough choices, future funding
for adult social care is good news but a lack of significant
extra government money needed to meet immediate pressures is
worrying.
“We expect government to provide urgent clarity on how it plans
to address high needs deficits, which are projected to rise to £5
billion next year, as part of its forthcoming SEND
reforms. Over half of councils have warned they will become
insolvent next year when the statutory override flexibility ends
and we continue to urge government to write off these
deficits.
“Public service reform and investment in prevention - especially
in social care and SEND - can reduce costs and demand, and
councils want to partner with government on this agenda. Council
financial pressures are also exacerbated by an outdated funding
system, so we look forward to the consultation on reform and a
roadmap to a sustainable, long-term financial model for local
government.”
