Councils face extra £3.6 billion in costs
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.
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.
Local taxpayers are heavily subsidising some commercial events because of outdated licensing fees, the LGA has said.
The LGA has warned that criminals are cold calling residents asking for their bank details so they can receive the Government’s £150 energy rebate.
New jobs and skills training vital to levelling up the country are at risk of delay or being lost altogether because of a looming funding gap when existing European cash runs out.
It can’t be easy being the Chancellor when the Office for Budget Responsibility states that British households are about to suffer “the biggest fall in living standards since records began”.
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.