More money for social care and schools, a 7 per cent cap on social housing rent rises, and new devolution deals in Cornwall, Suffolk, Norfolk and the North East were among the announcements in last month’s Autumn Statement.
Councils will have no choice but to implement significant cuts to services unless the Government provides extra funding to meet demand and cost pressures, the LGA has warned.
Councils need financial certainty to maintain public services and help deliver growth
Amid ongoing financial, economic and political uncertainty, the LGA continues to call strongly for a long-term government plan to put councils’ finances on a sustainable footing.
Just weeks after taking power, Prime Minister Liz Truss and former Chancellor Kwasi Kwarteng made a remarkable impact – their disastrous kamikaze mini-Budget crashed the economy, causing market panic, and forcing the Bank of England to intervene.
Before the mini-Budget, the LGA had calculated a £2.4 billion shortfall in our council budgets from next May.
Councils are at the heart of sustainable approaches to reducing cost pressures on residents.
As first was going to press, we were expecting an emergency fiscal package from the Government, announcing tax cuts.
Rising energy prices, spiralling inflation, and National Living Wage pressures are set to add £3.6 billion in unforeseen extra cost pressures onto council budgets in 2024/25, the LGA has warned.
Measures to tackle soaring energy prices, including an energy bill discount of £400 for all UK households this October, have been announced by the Chancellor.