LGA Reports £6.2 Billion Funding Gap for Councils in England
The Local Government Association (LGA) is urging the next government to increase funding and empower local authorities to build homes and boost economic growth. The LGA highlighted a funding gap of £6.2 billion over the next two years for councils in England. The association, representing 315 of the 317 councils in England, emphasized the importance of providing long-term financial certainty and empowering councils to address the issue.
In addition to pointing out the funding gap, the LGA cited factors such as record numbers of homeless families and children, rising demand and costs of adult and children’s social care as contributing to the financial pressure faced by councils. This pressure has led to service cuts in areas such as bin collections, road repairs, and library and leisure services.
The LGA’s call for increased and sustainable funding, public service reform, and greater powers for local authorities to build homes and drive economic growth was outlined in a Local Government White Paper. Conservative councillor Kevin Bentley emphasized the vital role of local government in providing essential services and called for cooperation between the next government and councils to address the challenges ahead.
Alongside the LGA’s proposals, the County Councils Network (CCN) also highlighted funding challenges for county councils, with a £2 billion funding gap predicted over the next two years. The CCN called for long-term funding settlements and increased financial support for councils to meet the growing demand for services, particularly in areas like adult social care and children’s services.
Meanwhile, the Taxpayers’ Alliance raised concerns about local authorities’ management of art assets, urging councils to either display the works or consider selling them to help alleviate budget shortfalls. The pressure group’s research found that local authorities are holding onto nearly 2 million pieces of art worth approximately £1.5 billion, with only a small percentage on public display.
