The LGA has responded to the Government’s Spending Review, and further analysis is in progress.
We think the 2.6 per cent uplift in spending power is because of the expected increase in council tax and some of the other increase from business rates.
Last year, the rural grant – which was to cover the additional costs of delivering services in a rural area – was redistributed from rural district councils to more urban areas, based on deprivation.
Without this grant, district councils may find the books very hard to balance, especially if there is the much-heralded reset of business rates, which would remove any gains we have had from growth over the past few years.
“District councils may find the books very hard to balance”
Funding for integrated care boards is being cut by 50 per cent, but the NHS has a 3 per cent real-term rise, and defence spending is set to rise from 2.3 per cent of GDP to 2.6 per cent, which will be among the highest in the world.
Of particular concern is the backward step of removing the decarbonisation budget for councils to increase their energy efficiency. This has been a very important £3.5 billion fund for around 1,400 grants for councils to upgrade their leisure centres, schools and hospitals.
A survey reveals cuts in services are expected, with a surge in demand and a shortfall, as the Government only funded 40 per cent of the increase in employers’ National Insurance contributions.
- For more information about the LGA’s political groups, see www.local.gov.uk