Dealing with the budgetary and financial pressures facing councils continues to dominate the focus of the LGA and our teams, ahead of the Autumn Statement on 22 November.
As this edition of first was going to press, the LGA was submitting its representation on behalf of councils to Chancellor Jeremy Hunt.
This sets out the overall financial challenges faced by local government and the specific pressures in four key areas: adult social care and winter pressures; children’s services; housing and homelessness; and net zero.
We know that funding, cost, and demand pressures are growing for all councils, putting at risk the financial sustainability of the sector.
However, while local government needs additional funding and multi-year financial settlements to help with longer-term planning (we are now on our fifth one-year settlement), this is not just about the money. We also need to see existing funding devolved locally and councils given the powers and responsibilities they need to join up different pots and projects – because we know that money spent locally is money spent well.
It’s not just the LGA saying this.
For example, modelling of interventions on heat, buildings and travel by Innovate UK found that local action would deliver net zero by 2050 while saving taxpayers around £140 billion compared with national approaches.
And analysis by the University of York suggests that the expenditure through the public health ring-fenced grant provided to local councils is three to four times as cost-effective in improving health outcomes than if the same money had been spent in the NHS.
We could achieve so much more, not just with greater investment, but with the right investment – and by making it local.
The LGA will continue to support councils in difficulty, and those at risk of falling into difficulty. Please liaise with your regional principal adviser if there is anything we can do to help your council.
