The provisional local government finance settlement for the upcoming financial year, with its £64.1 billion funding package, may seem like a step in the right direction.
A closer look reveals significant shortcomings and, sadly, we have become used to government ‘smoke and mirrors’.
While the Government claims a 6.5 per cent increase in Core Spending Power, some councils, such as Somerset Council, receive less, at just 6.1 per cent. It’s disheartening for those in need.
Additionally, the provisional settlement falls short for 2024/25 because of grant reductions. This shortfall comes at a time when social care costs are soaring, leaving councils struggling.
A Zoom call I held with Liberal Democrat council leaders shortly before Christmas showed how colleagues now face budget gaps of millions of pounds as a result of this finance settlement.
Council tax hikes are proposed as a solution, but they are hardly fair, especially during a cost-of-living crisis. It’s passing the burden onto already struggling households.
“We need a more thoughtful and sustainable approach for local services to thrive”
The absence of a long-term funding plan and continued one-year settlements create uncertainty in budgeting, hindering planning for the future.
This settlement falls short and, yet again, shows the downward spiral of local government finance we have seen over this Conservative Government. It doesn’t adequately address council challenges or meet the needs of communities.
We need a more thoughtful and sustainable approach for local services to thrive and to ensure everyone has an equal shot at a brighter future.
I will continue to campaign for a fair deal for our local communities.