Cllr , Chair of the Local
Government Association, said:
“The funding uplift announced by the Government today assumes
that all councils will increase their council tax bills by the
maximum allowed in 2024/25. This means councils are again left
facing the difficult choice about raising bills to bring in
desperately needed funding.
“Today’s settlement does not provide enough funding to meet the
severe cost and demand pressures which have left councils of all
political colours and types warning of the serious challenges
they face to set balanced budgets next year. Councils in England
continue to face a funding gap of £4 billion over the next two
years as today’s announcement does not change the funding gap
facing councils this year and next.
“It is therefore unthinkable that government has not provided
desperately needed new funding for local services in 2024/25.
Although councils are working hard to reduce costs where
possible, this means the local services our communities rely on
every day are now exposed to further cuts.
“No council is now immune to the growing risk to their financial
sustainability. The Government urgently needs to address the
growing financial crisis facing councils and come up with a
long-term plan to sufficiently fund local services through
multi-year settlements."
Notes to Editors
- An LGA survey –
published ahead of the provisional Local Government Finance
Settlement – found that:
- One in five council leaders and chief executives in England
think it is very or fairly likely their council will need to
issue a Section 114 notice this year or next.
- Half are not confident they will have enough funding to
fulfil their legal duties next year (2024/25). This includes the
delivery of statutory services.
- The LGA has estimated that councils in England face
a £4 billion funding gap over the next two years. LGA
analysis also shows that by 2024/25 cost and demand pressures
will have added £15 billion (almost 29 per cent) to the cost of
delivering council services since 2021/22.
