Metro mayors representing over 8.5 million people across the
country have joined forces to call on the Government to step
forward with emergency support for towns halls on the brink of
financial collapse.
West Yorkshire Mayor has led an intervention,
backed by the mayors of Greater Manchester, Liverpool City
Region, South Yorkshire, North of Tyne and Cambridgeshire and
Peterborough, by writing to Local Government Secretary calling for more resources for
struggling councils.
It comes as the government prepares to publish next year’s Local
Government Finance Settlement, which could plunge the future of
local public services further into doubt.
The letter (attached), which is signed by six metro mayors
representing communities right across the breadth of the country,
calls for extra finance alongside a package of reforms to make
local government funding fairer and more sustainable.
The Mayors argue that the government must take into account
rising costs and increased demand, as well as the higher costs of
providing for areas of higher deprivation.
Several local authorities across the country have warned that
they are unable to balance their budgets for next year, with
fears they will effectively become bankrupt if the government
does not step in with support.
Almost 1 in 5 told the Local Government Association they think
it’s fairly or very likely their chief finance officers will have
to issue a section 114 notice to declare themselves bankrupt.
While some councils have already been forced to take this drastic
step, many others are on the verge or are having to make
multimillion-pound cuts to services following a decade of
austerity, which has seen the LGA warn about a £3 billion black
hole in town hall budgets.
, Mayor of West Yorkshire
said: “We as Mayors have ambitious plans for our regions but we
will never be able to deliver the full potential of devolution
while our local authority partners are left on a financial cliff
edge.
“We are seeing more demand than ever before for local public
services and it is clear more urgent action must be taken.
“Councils across the country are struggling and we are urging the
government to do the right thing and step in take action to
support them before it’s too late.”
Contact Information
Notes to editors
Full letter text:
"Dear Michael,
"Councils across the country are seeing unprecedented increases
in demand for services, the impact of inflation, and reductions
in real terms funding levels equivalent to at least 25% since
2010.
"As a consequence, a number of authorities are facing real
sustainability issues.
"You have indicated that the coming Local Government Finance
Settlement (LGFS) will mirror the shape of last year. But we know
that it needs to grow to keep up with significant demand
pressures on local public services.
"Council services underpin economic growth and play a vital role
in protecting the most vulnerable in society.
"We must find a sustainable funding model to support them.
"This means providing adequate and sustainable funding through
the LGFS, to enable local authorities to meet the costs of their
core functions. This needs to include appropriate increases in
areas such as children’s and adult social care where cost
increases and increasing demand for services exceed headline
inflation levels.
"The 2017 Fair Funding Review needs to be revived, to make sure
funding levels for services, and the formulae that determine
them, take account of the higher cost of provision in areas of
high deprivation.
"Funding is not the only answer and we need to look at reform.
Abolishing ringfencing, introducing multi-year LGFS grants and
providing local authorities with the flexibility to be able to
freely direct resources such as capital receipts, would help
local authority financial planning.
"And of course, the need to find a financially sustainable model
for children's and adults' social care, which now make up the
lion's share of funding, is key to reducing substantial cost
pressures facing local government."
This has been sent on behalf of the West Yorkshire Combined
Authority and Mayor of West Yorkshire.
