Responding to the final Local Government Finance Settlement, Cllr
Neil Clarke, Chairman of the District Councils’ Network (DCN)
said:
“District councils will be hardest by this final settlement for
2017/18, suffering from a 5.2 per cent cut to core spending
power, compared to average 1.1 per cent reductions across the
whole of local government.
“We are particularly disappointed that the Government has decided
to implement the changes it has proposed for the New Homes Bonus
(NHB) in the final settlement without listening to the concerns
raised by district councils and wider local government. These
changes will have a disproportionate and adverse impact on local
communities. Not only will they risk damaging local economic
growth but also the ongoing funding of local public services.
“Rather than supporting local areas, retrospective changes to the
NHB will create further financial instability and risks removing
any incentive for future housing growth. If district councils are
to help government deliver on its bold house building ambitions,
then the introduction of a new 0.4 per cent baseline for housing
growth under which councils will not receive any new homes bonus
is not the answer and undermine local support for housing growth.
It is unfair, and counterproductive. District councils will
continue to call for greater fiscal freedoms in relation to
housebuilding to ensure that districts can deliver more housing
despite these unhelpful and unfair changes to the new homes
bonus
“There is no doubt that additional funding for adult social care
is needed, however, this shouldn’t be done at the expense of
equally vital services. Solutions which only recycle existing
local government funding and benefit only 95 out of 152 social
care authorities, is robbing Peter to pay Paul.
“What is needed is a sustainable and long-term funding solution,
alongside a far greater focus on prevention to reduce demand.”
