‘Worst yet to come’ without extra funds for county budgets
0More than a third of county council leaders are uncertain whether they will be able to deliver a balanced budget next year, according to a major survey.
A poll taken by the County Councils Network (CCN) found that 17% of county leaders are “not confident” and 19% “neutral” on whether they will be able to meet their budget requirements in 2019–20 without extra resource.
A separate assessment by CCN found that counties face funding pressures totalling £3.2bn over the next two years, with £1.8bn down to costs beyond of their control.
Paul Carter, chairman of CCN and leader of Kent County Council, said: “County authorities have delivered extraordinary savings over the past eight years of austerity, helping to restore the public finances of this country.
“But costs outside of our control and demand for services, such as adult and children’s social care, are adding additional unfunded costs of £1.5bn to our budgets over the next two years.”
County leaders have called on James Brokenshire, the new communities secretary, to lobby the Treasury for new cash.
Carter said: “Recent research clearly shows that councils will need additional support next year in advance of the Spending Review.
“We will work hard to deliver the savings required this year, but the scope for making deliverable savings has dramatically reduced, and decisions for next year will be truly unpalatable if we are to fulfil our statutory duties.
“Without additional resource, the worst is yet to come.”
Beyond the current spending review period, which ends in 2020, confidence among council leaders about their finances plummets. Just a third say they are confident they will be able to deliver a balanced budget in 2020–21 without an extra cash injection. In total, 66% are “not confident” or “neutral”.
CCN also criticised the government’s recent practice of bailing out councils at the last minute by providing emergency funding and greater council tax flexibilities.
Earlier this year, the government provided £167m of additional resources and allowed council tax increases of 3%.
The CCN said such a “hand to mouth” approach is not sustainable.
Nick Rushton, CCN finance spokesman and leader of Leicestershire County Council, said: “The government is aware that some councils are already teetering on the edge. And the stark reality is they cannot wait for the comprehensive spending review.
“This is why we’ve been campaigning for fairer funding. The time has come for less talk and more action from this government.”
