‘Unprecedented’ costs and pressures on councils

It is shaping up to be a busy year for local government in 2024.

At the end of last year, the provisional local government finance settlement was announced. 

The LGA has forecast a £4 billion funding gap for local government over the next two years and has been calling on the Government to close this gap to support councils – but, unfortunately, there was no new funding announced in the settlement.

Local government is entering 2024 in a perilous financial situation, with councils facing unprecedented demand for services, as well as rising costs and inflationary pressures.

Almost one in five council leaders thinks it is ‘very’ or ‘fairly’ likely that they will need to issue a Section 114 report this year or next, following a decade of government cuts.

With a General Election looming, we will expect to see the political parties set out how they will reverse the growing crisis in local government. 

“Local government is entering 2024 in a perilous financial situation

Shadow Levelling Up, Housing and Communities Secretary Angela Rayner and her team have already set out a bold vision, proposing to devolve power from Whitehall to town halls, where local leaders can best address their communities needs.

May will also bring another set of local and mayoral elections, and I am looking forward to campaigning with Labour councillors across the country to see Labour continue as the largest party in local government, showing the good that comes from having Labour in power locally.

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