Fury as Michael Gove snubs emergency council money plea amid chapter fears
Councils struggling to steadiness their books face extra distress subsequent yr after ministers ignored calls for for emergency funding.
Leaders warn they should make much more extreme cuts or ramp up council tax after the newest Tory money snub. The Government has introduced £64billion of funding for English councils within the subsequent monetary yr – a 6.5% rise.
But native authority bosses say this isn’t sufficient, with seven in ten now not assured they will steadiness their books. Last month Nottingham City Council turned the eighth to successfully declare itself bankrupt since 2018, with fears of extra to observe.
Following the announcement the County Councils Network (CCN) warned voters at the moment are left dealing with a “double whammy”. The physique’s finance spokesman, Cllr Barry Lewis, stated it had put a “strong case” for emergency funding attributable to monetary strain past out councils’ management.
He stated: “But despite constructive discussions with ministers over recent days the government has chosen not to act. With no additional funding announced, our councils will have no choice but to implement more severe reductions to services and to levy higher council tax rises.
“This will undoubtedly be a double whammy for residents throughout a price of residing disaster, whereas an rising variety of native authorities will battle to ship a balanced price range subsequent yr.”
Labour has lashed out on the Government, accusing it of getting a “reckless strategy” to native authorities funding. Shadow native authorities minister Jim McMahon stated: “Today’s announcement is a prime example of sticking plaster politics.
“Councils of all stripes continue to face financial difficulty, and the common denominator is a Conservative Government. The government’s reckless approach to local government risks preventing older people from getting the care they deserve, risks children not getting the protection they need, and risks families being left without a safe and secure home.”
He said councils are struggling due to high inflation and a stagnating economy, adding: “This is a crisis made in Downing Street being felt by every street in the country.”
Meanwhile the Local Government Information Unit (LGIU) said too little had been done to address long-term funding. Chief executive Jonathan Carr-West said: “This year’s provisional financial settlement does not address the severe problems at the heart of local government finance and is simply too little, too late. There is little confidence across the sector in local governments’ financial resilience. In March this year, only 14% of senior council figures said they were confident in the sustainability of local government finances. Since then, three more councils have announced their effective bankruptcy.”
In a statement the Government said an extra £4billion was being awarded “in recognition of the pressures being faced by local authorities”. Local authority bosses are allowed to raise council tax by up to 3% without a local referendum – with an additional 2% for those responsible for adult social care.
Levelling Up Secretary Michael Gove said: “Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve. We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up.”
The Government stated England’s most disadvantaged areas will obtain 18% extra per dwelling than the wealthiest areas, whereas an additional £1billion will probably be allotted for social care.
