The finance settlement 2021
A funding increase for councils will be dependent on them increasing council tax bills.
A funding increase for councils will be dependent on them increasing council tax bills.
Councils in England face a £2 billion funding gap in the current financial year and could be forced to cut services if the Government does not meet the cost of soaring COVID-19 spending, the Institute for Fiscal Studies (IFS) has warned.
With a Comprehensive Spending Review (CSR) under way, I have been writing to ministers on behalf of the LGA’s member councils.
Another week, another U-turn – this time, the botched A-level results saga. And a government that claims to be ‘levelling up’ has proved once again that this is just one more empty slogan to add to the pile.
Securing the long-term sustainability of local services must be the top priority of the Government’s 2020 Comprehensive Spending Review, the LGA has said.
Some councils have exposed themselves to commercial investments that risk cuts in local services and a big bill for local taxpayers, according to the Commons’ Public Accounts Committee.
More than £730 million in vital EU cash – which could help local communities bounce back from COVID-19 – risks going unspent and being sent back to Brussels if the funding is not allocated by the Government before the end of the year, the LGA has warned.
The Government’s funding package for councils offers some positive measures and recognises the pressures they are facing, but more is needed.
Further funding and financial flexibilities are needed to avoid in-year cuts to vital local services during the pandemic.
Local government faces “unsustainable” financial pressures as the sector continues to lead efforts to beat the coronavirus pandemic, the LGA has warned.