Local government finances remain “under severe pressure”, the LGA has warned, after last week’s Budget failed to provide significant increased funding.
Chancellor Rachel Reeves announced a swathe of measures, including the ending of the two-child benefit cap, a council tax surcharge for homes worth more than £2 million, a tourist levy, and a new vehicle excise duty for electric vehicles.
Cllr Kevin Bentley, the LGA’s Senior Vice-Chairman, said: “Scrutiny of the Budget will focus on decisions around national taxation. However, while people rightly care about tax levels and the cost of living, they also care deeply about the local services they rely on every day.
“Councils work tirelessly to deliver on the ambitions of residents and are key to solving many of the challenges the Government is looking to address.
“However, local government finances remain under severe pressure, with councils facing huge cost pressures in areas including adult social care, temporary accommodation, special educational needs and disabilities, and home-to-school transport.
“The Government has acted on LGA calls to provide greater financial certainty and a simpler funding system, which are hugely important for councils.
“While funding levels have increased in recent years, councils will be rightly anxious that the Budget does not provide the increase in funding they desperately need to ensure their financial sustainability, protect services, support local communities and address national priorities.”
- See Beyond stability: the future of local government for WLGA commentary on the draft Welsh budget.