In April, most families will be facing a perfect storm of soaring energy prices, rising inflation, and the extra burden of Conservative hikes to both National Insurance and council tax. Many will struggle to pay the bills – and Chancellor Rishi Sunak’s thin package of support simply does not go far enough for most.
It’s a testing but all-too-familiar mix: funding cuts from central government, skyrocketing demand for local services, a growing population, tough choices, and communities vulnerable as they recover from the pandemic.
The LGA has published a review of options for the future financing of local government.
Council core spending power could increase by 6.9 per cent in cash terms in 2022/23, according to the provisional local government finance settlement.
As we begin a new year, it’s natural to think about new beginnings. Could 2022 be the year that the Government stops dithering and finally gets a grip on council funding?
Councils face average extra annual cost pressures of £2.5 billion to maintain services at current levels, LGA analysis has found.
A three-year spending review is “long overdue” and something local government “desperately needs”, according to Communities Secretary Robert Jenrick.
Despite increased government support, councils need a further £2.6 billion in this financial year to plug funding gaps arising from the pandemic.
Thousands of families rely on universal credit to pay for day-to-day essentials including food, clothing and utilities.
