After the leader of Birmingham City Council welcomed the 2018 Local Government Association Conference to Birmingham (ICC, 3-5 July) Lord Porter, chairman of the LGA, spoke.

An extract from his keynote speech, published on the Local Government website

 I know that the state of Council finances keeps many of us up at night. Making the bottom line work for you will continue to be a priority for the LGA’s lobbying.

The money local government has for vital day-to-day services is running out fast. There is also huge uncertainty about how local services are going to be funded beyond 2020.

Councils can no longer be expected to run our local services on a shoestring. We must shout from the roof tops for local government to be put back on a sustainable financial footing.

We’ve protected government for a long time by making sure all the cuts thrown our way were implemented in a way that shielded our residents as much as possible.

But if austerity is coming to an end, then, as we were in the front of the queue when it started, we must also be at the front of the queue for more money when it ends. Only with adequate funding and the right powers can Councils help the Government tackle the challenges facing our nation.

Lord Porter (left) added that the cap on council tax also needs to be lifted: “Let us be clear, every penny in local taxation collected locally must be kept by local government and spent on our public services”.

Stroud District Council is the first council in Gloucestershire to lose its revenue support grant from the Government – a grant that has been paid in some form or another to all local councils for more than 50 years. In 2019/20 it must pay back £549,000, due to a ‘tariff adjustment’. This will be the largest sum paid by any Gloucestershire council and marks a new relationship between central and local government.

In July the FT pointed out that between 2015 and 2020, the Revenue Support Grant will have shrunk 77p in the pound, the Local Government Association the UK government plans to slash their core funding 77%. Almost half of all councils — 168 — will no longer receive any core central government funding in the 2019/20 budgetary year, according to the LGA, adding:

“The LGA says it is impossible to cut any further. It estimates a £5.8bn funding gap in 2020 — even if councils stopped filling in potholes, maintaining parks and open spaces, closed all children’s centres, libraries, museums, leisure centres, turned off every street light and shut all discretionary bus routes”. 

 

 

 

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