Budget-setting will remain a “hugely challenging task” for many councils in England, despite confirmation of a multi-year financial settlement before Christmas, the LGA has warned.
While funding levels have risen over the past few years, an increase in overall funding is still needed to ensure the financial sustainability of councils and local services, said Cllr Louise Gittins, LGA Chair.
She added: “All councils need to be protected from real-terms cuts next year, and have adequate funding to fully meet spiralling cost and demand pressures.
“Alongside a significant boost in resources, it is critical that government works with councils to reform key services, such as special educational needs and disabilities, and adult social care, and undertakes a cross-party review of options to improve the wider local government finance system.
“We remain concerned by the number of councils having to use unsustainable emergency bailouts, which are a clear warning sign about the financial pressures facing local government.”
In Wales, the WLGA has welcomed an updated draft local government settlement, published in early December, that includes an average 4.5 per cent increase and a minimum 4 per cent for all councils. The updated draft settlement includes £112.8 million in additional funding for local government, forming part of a wider Welsh Government-Plaid Cymru budget agreement.
The WLGA said pressures in social care, homelessness and education remain extremely challenging, but the settlement would “make a meaningful difference”.