Labour council leaders demand more cash
0The leaders of 76 Labour councils have written to Communities Secretary, James Brokenshire, asking for an emergency cash injection.
The letter, first reported in the Observer, comes ahead of this week’s settlement for local government on 6 December.
The Labour leaders want the review to address what the Local Government Association has identified as a £3.9bn funding shortfall in 2019/20, rising to £7.8bn by 2025 if no action is taken.
As a minimum the leaders are demanding the cancellation of the planned £1.3bn cut to next year’s Revenue Support Grant.
It follows in the wake of other lobbying letters.
Council leaders from Yorkshire and Humber have written to the chancellor and secretary of state for education ahead of the review requesting more money for children with special needs, while the presidents of the Society of London Treasurers and the Society of County Treasurers have sent a letter to the secretary of state for education on the same theme.
Last week Northamptonshire County Council was rescued from the threat of insolvency by the government setting aside the rules preventing the use of capital receipts for day-to-day services.
In their letter the heads of the Labour-run authorities say: “As leaders of councils representing millions of citizens, we are writing to make clear that you must use the settlement to truly end austerity in local government and immediately provide the funding we need to avoid catastrophic collapse in key council services.”
The council leaders state that since 2010 councils have lost 60p in the pound provided by the government.
“After eight years of austerity, many councils have reached breaking point and council budgets are perilously close to collapse.”
The councils whose leaders signed the letter include Birmingham, Leeds, Liverpool, Manchester and Newcastle.
