Local government leaders urge George Osborne to spare the axe

By The Press Association14th March 2016News EnglandBusiness / Funding / Finance, Finance, Government / Politics, Local Authorities, News England

Town hall leaders have warned George Osborne against making further cuts to council budgets.

With reductions to council grants planned over the next four years, councils say that key services could be affected if the Chancellor hits them with further cuts in this week’s Budget.

Lord Porter, chairman of the Local Government Association (LGA), said: “Councils have more than played their part in trying to balance the nation’s books in recent years, and all councils will have to continue to find substantial savings from local services to plug funding gaps over the next four years.”

The Chancellor has recently said that public sector cuts might be needed to boost the economy, which is growing at a slower rate than expected.

However, Lord Porter said that instead of cutting council funding, the Government should consider “whether to tear down the ring-fence around health and education spending.”

“Pumping money into the NHS while councils receive less social care and public health funding is a false economy. A properly funded social care system is essential to alleviate the pressure on the NHS,” he said.

The proposals set forward by the LGA also include recommendations for further devolution to councils.

The LGA says that councils could improve housebuilding, increase the number of school places, and reduce unemployment if the Chancellor gives them further powers to run local services.

The proposals include allowing councils to retain 100% of business rates income, and devolving funding and responsibility for national employment schemes to local areas.

The LGA says that 55,000 more disadvantaged jobseekers and people with disabilities could be helped into work if such powers were given over.

It has also asked Osborne for the £700 million of new money due to be given to councils in 2019/20 as part of the Better Care Fund to be brought forward to this year.

A Department for Communities and Local Government (DCLG) spokesman said: “Our historic four-year £200 billion deal for councils gives them certainty to plan ahead, and ensures those facing the highest demand for services continue to receive more funding.

“By the end of this parliament councils will also be able to keep 100% of local taxes, including all £26bn from business rates, providing a strong incentive to support businesses and back growth.”