After months of LGA and council warnings that growing funding gaps would lead to cuts in services, the Government announced in January that an additional £600 million will be included in the final local government finance settlement for 2024/25.
I welcome any extra funding. The LGA and its partners, including the County Councils Network and the District Councils’ Network, worked really hard to get every additional pound that was announced by Michael Gove, Secretary of State for Levelling Up, Housing and Communities.
However, in the next financial year, we have a funding gap of £1.6 billion just to ‘stand still’ and maintain current levels of provision that are already insufficient to meet rising costs and demand for vital services such as children’s and adult social care, special needs home-school transport, and homelessness and housing.
Despite the £600 million announcement, almost two-thirds of that £1.6 billion pressure remains: councils will still need to raise council tax and many will have to make cuts to local services to balance their budgets.
That is why, with the Budget due on 6 March, the LGA continues to make the case for not just plugging the gaps in council finances but for long-term, sustainable investment in local government.
This is an invest-to-save proposal that would help the Government deliver its national policy priorities, including economic growth and getting better value for money from public spending.
From building more social homes to reduce the record-breaking number of households in temporary accommodation to improving outcomes for looked-after children and young people leaving care, we know that public services can be delivered faster, better and more efficiently at a local level.