The first Labour Government Budget since 2009 has met with a mixed response among Liberal Democrats in local authorities.
For many it was a case of ‘Meet the new boss, same as the old boss’.
Once again, local councils face increasing council tax, raising charges, and making cuts to vital services in response to insufficient government funding.
The sector remains on life support.
Despite the additional £1.3 billion in grant funding, it is at least £1 billion short of what the LGA has estimated is needed just for councils to stand still.
According to the LGA, councils in England need at least £2.3 billion next year just to maintain services at current levels.
The Government’s offer falls far short of what’s required.
There were some positive measures – for example, reform of Right to Buy and some support for carers, things that both the LGA and the Liberal Democrats have been calling for.
And while the £600 million extra for social care and the £500 million extra for pothole repairs are, of course, welcome, it is yet again the same trick used by the previous Tory Government: once again, central government has thrown enough money at local government to stop the system collapsing completely, but nowhere near enough to solve the problems we face in the long term.
“Despite the talk of change, austerity remains alive and well for local councils”
There was no extra funding whatsoever for local authority public health teams.
And the extra money for social care could, of course, be eclipsed by the hike in employers’ National Insurance contributions, as businesses – such as care homes, which work with councils to provide care services – have to take account of the rise.
The LGA is calling for urgent clarity on this issue.
Despite all the talk of change from the new Labour Government, austerity remains alive and well for local councils.
- For more information about the LGA’s political groups, see LGA website
