Councils face £6.2bn funding gap

So says the LGA in its new Local Government White Paper, which also reveals that councils face a £6.2 billion funding gap over the next two years.

The gap is being driven by rising cost and demand pressures on adult social care, children’s services, homelessness support and home-to-school transport for children with special educational needs and disabilities. 

The LGA is calling on all political parties to commit to a significant and sustained increase in funding in the next spending review, alongside multi-year funding settlements and reform of the local government finance system. 

The white paper also calls for a major review of how all public services can work together within their local communities on a joint approach to prevention and reducing demands on costly, high-need services, such as adult and children’s social care.

Focusing on how councils, when given the powers, can shape their local areas, the white paper makes clear that economic growth can only be achieved if every local economy is firing on all cylinders. 

Cllr Kevin Bentley, the LGA’s Senior Vice-Chairman, said: “We all rely on local government to keep our streets clean, collect our bins, fix our potholes, build more homes, create jobs, keep children safe, and support people of all ages to live fulfilling lives.

“However, a £6.2 billion funding gap over the next two years means a chasm will continue to grow between what people and their communities need and want from their councils, and what councils can deliver. 

“On 5 July, the next government will be faced with many challenges, whether it is building more affordable housing, improving care for adults and children, reducing homelessness, boosting inclusive growth or tackling climate change.

“Local government’s offer to the next government is huge. Respect us, trust us and fund us. By working together as equal partners, we can meet the fundamental long-term challenges facing our communities.”

  • To find out more about the LGA’s Local Government White Paper, see ‘A new hope’.
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