Cllr James Jamieson is Chairman of the Local Government
Association, which represents more than 350 councils across
England and Wales, said:
“The news that government departments have been tasked with
identifying efficiency savings from public sector budgets has
sent a collective shiver down the spine of local
government. It comes at a time when the future
financial sustainability of councils and local services is
already on a cliff-edge.
“The dramatic increase in inflation has undermined
councils’ budgets. Alongside increases to the National
Living Wage and higher energy costs, this has added at least
£2.4 billion in extra costs onto the budgets councils set in
March this year. Some are planning to use reserves to plug
funding gaps, stop capital projects or make cutbacks to services
to meet their legal duty to balance the books this year.
“However, with local government facing a funding gap of £3.4
billion in 2023/24 and £4.5 billion in 2024/25 it is clear that
the Government needs to come up with a long-term plan to manage
this crisis.
“In the past decade, councils have done more than their fair
share of the heavy lifting when it came to putting public
finances on a more sustainable footing, having faced a £15
billion real terms reduction to core government funding between
2010 and 2020.
“The Government needs to ensure councils have the funding to meet
ongoing pressures and protect the services that will be vital to
achieve its ambitions for growth and to produce a more balanced
economy, level up communities and help residents through this
cost-of-living crisis. Without certainty of adequate funding
for next year and beyond - and given the funding gaps they are
seeing - councils will have no choice but to implement
significant cuts to services including to those for the most
vulnerable in our societies.”
Notes to editors
Letter from the LGA
Chairman and Political Group Leaders to the Chancellor of the
Exchequer
LGA Submission:
Government's Medium-Term Fiscal Plan
