LGA call to ‘build back local’
Councils face average extra annual cost pressures of £2.5 billion to maintain services at current levels, LGA analysis has found.
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.
Just before lockdown in March, we were due to consider a motion on approving the Councils for Fair Tax Declaration. We wanted Trafford to be an early endorser of a growing movement that is standing up for responsible corporation tax conduct.
Talking about debt is never an easy subject to broach, especially during a global pandemic, when debts may be held by the vulnerable or those under significant financial strain.
The Chancellor has decided to only conduct a one-year Spending Review in order to prioritise the response to COVID-19, and focus on immediate support to create jobs.
The final local government finance settlement for 2021/22, which was laid before Parliament in February, confirmed that councils will receive a share of £51.3 billion in funding (a 4.6 per cent increase in cash terms).
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.