This could have been a consequential period for local government finance.
The fairer funding announcements were an opportunity to reset council finances on a trajectory that would enable our councils to sort out the challenges of this decade.
Instead, this failed.
Well-managed councils will be punished, and it wedges a divide like never before between rural and urban councils following changes to the ‘remoteness’ adjustment.
Then we had the Budget.
For the Treasury, again this was the moment to reset council finances. Writing off high-needs block deficits; meaningful investment in special educational needs and disabilities provision and home-to-school transport to alleviate pressures; cash to resurface our roads.
Instead, it failed.
What we ended up with were tax hikes to subsidise a welfare state spiralling out of control, presumably to buy off a rebellion on the Labour backbenches.
LGA Conservatives agree with the sentiments of the District Councils’ Network and the County Councils Network. First, it does the Government little favour to punish the very councils that will be instrumental in delivering its ‘missions’ – namely, delivering new housing.
Second, it is grotesquely unfair that councils previously not in receipt of the Recovery Grant won’t be allowed to access it from 2026/27 onward.
- For more information about the LGA’s political groups, see LGA website.