Laura Sharman 17 March 2016

Budget 2016: Local government left ‘deeply anxious’

Local government experts have warned the planned £3.5bn cuts to public services will mean financial uncertainty for councils for the next few years.

In his Budget 2016 announcement, chancellor George Osborne announced further cuts of £3.5bn to public spending by 2020 and business rate relief will be extended permanently.

However, Jonathan Carr-West, chief executive of the LGiU, warned this will leave many in local government ‘deeply anxious’.

‘It’s not clear where these cuts will fall but experience suggests they will hit local government either directly or through the knock on effects of cuts to welfare benefits,’ he said.

‘Only two months ago local government was offered the “certainty” of a four year funding settlement, but that certainty already looks illusory.’

Simon Parker, director of the New Local Government Network, also warned the extra cuts were at odds with the promise of stable funding for councils.

He said: ‘The government promised stable, long-term funding for councils, but today's announcements will only add to the sector's confusion. George Osborne promised further cuts for 2019 and knocked a huge hole in business rate income without spelling out how councils will be compensated.’

CIPFA also said the Budget announcement was likely to leave councils feeling ‘stitched up’ by the Government. CEO Rob Whiteman commented: ‘While councils will welcome reduced costs for small businesses, they are likely to feel as though they’ve been stitched up. Business Rate revenues are planned to replace Whitehall grants but have now been cut with no warning.’

The Local Government Association (LGA) said it was pleased Mr Osborne didn't announce any direct cuts to local government funding but said councils still needed financial stability. Lord Porter, chairman of the LGA, said: 'Councils now need a period of financial stability and consistency so they can plan for the pressures facing local services which lie ahead over the next few years and need to be protected from any more funding cuts during this Parliament. This, alongside greater power to run local services, is essential.'

The Treasury said local authorities will be compensated for the loss of income from business rates reform.

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Support Worker - D-BIT Service

Essex County Council
£24395 - £31131 per annum + + 26 Days Leave & Local Gov Pension
Senior Support Worker - D-BIT ServicePermanent, Full Time£24,395 to £31,131 Per AnnumLocation
Recuriter: Essex County Council

Senior Surveyor

London Borough of Richmond upon Thames and London Borough of Wandsworth
Starting Salary from £42,192 based on Skills Kno
Job TitleSenior Surveyor
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Recycling Centre Site Operative - Colchester Recycling Centre

Essex County Council
Up to £23344.0000 per annum
Recycling Centre Site Operative - Colchester Recycling CentrePermanent, Full Time and Part Time£23,344 per annum (full time equivalent) Location
Recuriter: Essex County Council

Housing Development Assistant - WMF1652e

Westmorland and Furness Council
£27,711 - £28,624
The post-holder will provide administrative support and assistance to the Housing Development & Enabling Team Cumbria / Various
Recuriter: Westmorland and Furness Council

Project Support Officer - Revenues and Benefits - WMF1653e

Westmorland and Furness Council
£33,366 – £34,314
This is an exciting opportunity to join the Programme Management Office to help improve services for residents Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.