Responding to the Budget, Cllr , Chair of the Local
Government Association, said:
“We are pleased the Chancellor has extended the Household Support
Fund (HSF), which has helped millions of households facing
hardship. It is disappointing that we had to wait until the very
last minute for an extension, and that it is only for a short
period. Three-quarters of councils expect hardship to increase
further in their area over the next 12 months.
“The Government needs to use the next six months to agree a more
sustainable successor to the HSF. Councils need certainty
and consistent funding to efficiently maintain the staff,
services and networks that help our most vulnerable residents.
Without this we risk more people falling into financial crisis as
we head into winter.
“It is disappointing that the Government has not announced
measures to adequately fund the local services people rely
on every day. Councils continue to transform services but, given
that core spending power in 2024/25 has been cut by 23.3 per cent
in real terms compared to 2010/11, it is unsustainable to expect
them to keep doing more for less in the face of unprecedented
cost and demand pressures.
"Councils of all political colours are starting this financial
year in a precarious position, and having to scale back or close
a wide range of local services, so the continued squeeze in
public spending in the years ahead is a frightening prospect for
communities.
“This year also saw the sixth one-year settlement in a row
for councils. Keeping them on a financial drip feed in this
way has led to the steady weakening of local services. Councils
need greater funding certainty through multi-year settlements to
prevent this ongoing decline but also to ensure key national
government policies – such as boosting economic growth, creating
jobs and building homes - can be achieved.”
Notes to editors
- LGA analysis shows cost and demand pressures have added £15
billion (28.6 per cent) to the cost of delivering council
services since 2021/22. Almost two thirds of spending for
councils with social care responsibilities was spent on services
for adults and children – this is up from 56.5 per cent in
2016/17.
LGA Spring Budget
submission
- An LGA survey found 85 per cent of councils said they would
still have to make cost savings to balance their 2024/25 budget,
despite extra government funding. Over half (52 per cent) of all
respondent councils anticipated having to make cost savings
within at least three different neighbourhood services.
LGA Local Government
Budget Setting Surveys 2024/25
- More than 8 out of 10 of the councils that responded to an
LGA survey say that financial hardship has increased in
their areas just as vital local funding used to support
vulnerable households is due to end. Almost two thirds of
respondents (62 per cent) said they could provide no additional
discretionary funding to replace what is lost from the end of the
Household Support Fund, whilst just under a fifth of respondents
(17 per cent) said that alongside the fund ending, they would
also be reducing their own local welfare discretionary funding
due to financial pressures.
LGA Household Support Fund
survey
