Warning that councils at financial tipping point
Non-statutory council services are ‘seriously at risk’ from being axed, the local government sector has warned.
The Association for Public Service Excellence (APSE) said if the planned cuts to the DCLG’s budget was passed down to councils, many would reach their financial tipping point and only be able to provide basic services.
The Local Government Association (LGA) also warned that the spending review represents a 24% reduction in real terms to the local government grant, including the £1.5bn increase to the Better Care Fund.
Business advisory firm Deloitte also expressed concern that the spending review did not consider how the financial failure of councils would be managed.
Chairman of the County Councils Network (CCN), cllr Paul Carter, also said he was expecting a ‘tough’ final settlement for local government.
While Mr Carter said the CCN welcomed the responsibility for financing local government services shifting towards local areas, this should be accompanied by reforms to the way counties are funded.
The District Councils’ Network (DCN) also said it would need to ‘delve beyond the headline announcement’ to find out what implications the DCLG consultation on local government finance will mean to the sector.
