Ministers ‘In Denial’ About Desperate State Of Council Funding, Says Powerful Commons Committee

Communities Secretary James Brokenshire said the current settlement would pave the way for “a fairer, more self-sufficient and resilient future” for local government.

“That is why local authorities will have more control over the money they raise and a real terms increase in their core spending power,” he said.

“The settlement also recognises the pressures councils face in meeting growing demand for services and rewards their impressive efforts to drive efficiencies and rebuild our economy.”

But reacting to the report, Richard Watts, chair of the Local Government Association’s Resources Board, said councils were crippled by cash shortages. 

He said: “Pressures continue to grow in children’s services, adult social care, and efforts to tackle homelessness and this is leaving increasingly less money for councils to fund other discretionary services, such as the maintenance of parks, certain bus services, cultural activities and council tax support for those in financial difficulty – to plug growing funding gaps.

“Fully funding councils is the only way to ensure councils can continue to provide all of the valued local services which make such a positive difference to communities and people’s lives.”

Andrew Gwynne, Labour’s shadow communities and local government secretary, said the report “exposes a human and financial crisis of the Tories’ own making”.

He said: “Local government is under enormous pressure because of politically motivated cuts that have hit our poorest areas hardest. Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average. And when you cut vital support services in such areas, social problems grow – and demand for those services only becomes greater.”