The Government’s ambitions to rewire the state and boost inclusive growth will only succeed if it confronts the financial crisis facing councils and local services, and turbo-charges genuine English devolution.
So says the LGA in its submission ahead of the Autumn Budget on 28 October, which also calls for a revised approach to the current system of exceptional financial support (EFS) for local authorities struggling to balance their budgets.
Despite already delivering billions in savings and efficiencies since 2010/11, councils in England still face a £7 billion funding gap by 2028/29, and one in five with social care responsibilities required EFS to set a balanced budget for 2026/27.
The LGA’s Budget submission calls for a broader response that addresses the underlying cost and demand pressures facing the sector.
In addition to reviewing EFS, the submission also includes calls for the Government to: to reduce burdens by reviewing sales, fees, charges and statutory duties; commit to writing-off historic and accruing Dedicated Schools Grant deficits fully; ensure that growing financial pressures on NHS budgets are not transferred to council budgets; and fully fund the costs to councils of adult social care workforce reforms, including the introduction of a fair pay agreement.
Cllr Eamonn O’Brien, LGA Chair, said: “Strong, capable and financially sustainable local authorities are essential to deliver on our shared priorities for health, housing and giving people every opportunity to thrive where they live.”