LGA says services under strain despite positive settlement
0The Local Government Association says increased funding through this year’s local government finance settlement is not enough to reverse years of underfunding for councils.
In its response to the settlement, the LGA says councils have seen reductions of nearly £15bn to core government funding since 2010.
It said: “Even with the increases in the 2020/21 settlement, local authorities are continue to be under real strain, with services such as social care and housing under particular pressure.
“This has effects on both the people that rely on these services and the financial sustainability of other services councils provide.
“When councils are forced to reduce spending on services, it can have potentially negative longer-term consequences on other areas such as prevention.
“This will increase the burden for the future both for councils and other organisations such as the National Health Service and the police.”
The response said that the 2020 Spending Review will be vital for the future of local government and the communities it serves
The LGA response said that the government needs to work closely with councils during its review of the New Homes Bonus, announced in the provisional settlement before Christmas.
In addition, it called for additional funding to help councils cope with the £220m burden of a rise in the National Living Wage.
The LGA said it was disappointed that the government did not provide a progress update on the Fair Funding Review or further business rates retention in the settlement.
“With implementation scheduled for April 2021, it is crucial for local authority financial planning that the Government consults on proposals for reform and provides certainty to councils as soon as possible and that no authority loses out from the fair funding review,” it said.
