Responding to the report by the Institute for Fiscal Studies on
the risk to ‘unprotected' government departments in the Spending
Review, Cllr Pete Marland, Chair of the Local Government
Association's Economy and Resources Board, said:
“Councils in England face a funding gap of up to £8 billion by
2028/29 and have already had to make huge savings and
efficiencies over the past decade.
“They desperately-need a significant and sustained increase in
overall funding in the Spending Review to meet the requirements
being placed on them.
“Without adequate funding, councils will continue to struggle to
provide crucial services – with devastating consequences for
those who rely on them - and it will be impossible for them to
help the Government achieve its reform and growth agenda.”
Notes to editors
LGA analysis shows that:
- By the end of 2028/29, cost and demand pressures on councils
will have added £21.4 billion to the cost of delivering local
services since 2024/25. This is 29.8 per cent in additional
service costs.
- Councils face a £1.9 billion gap in 2025/26, rising to £4
billion in 2026/27, £6 billion in 2027/28, and £8.4 billion in
2028/29. Councils face a combined funding shortfall of £20.3
billion across the four years of the Spending Review period.
- Local government's core spending power is 16.4 per cent lower
in real terms in 2025/26 compared to 2010/11 and councils made
£24.5 billion worth of cuts or efficiencies to their net service
spending from 2010/11 to 2022/23.