27 January 2017

Councils facing £5.8bn funding gap by 2020 warn town hall chiefs

The financial settlement will leave two-thirds of councils millions of pounds worse off in 2017/18 - with 201 districts pushed towards ‘financial tipping point’ - council leaders have warned today.

The Local Government Association (LGA) is calling on the Government to reverse unexpected reductions in New Homes Bonus (NHB) payments to councils and find 'genuinely new money' to properly fund social care.

Analysis by the LGA also showed that 57 social care authorities will lose more in New Homes Bonus than they gain in the Adult Social Care Support Grant.

The research found councils would need to achieve growth of greater than 0.4% before they receive any NHB payments.

Lord Porter, LGA chairman, said: ‘No new money from central government is being provided to councils in 2017/18. In fact, more than two thirds of councils will actually be worse off next year than they were expecting.

‘Councils need government to reverse New Homes Bonus cuts next year and fund the Adult Social Care Services Grant with new money. This would avoid councils from having to make deeper than expected cutbacks to local services in 2017/18 and would provide some short-term support to councils providing social care.’

Norman Lamb, Liberal Democrat shadow health secretary, said that local councils are being 'gradually starved of cash'.

'If these cuts go ahead, vulnerable elderly people will suffer and services will struggle to meet basic needs such as washing, dressing or getting out of bed,' he said.

For more on this story visit The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Planning and Coastal Management

East Suffolk Council
£87,358 - £99,018 per annum, plus benefits
Following a restructure which has placed the current postholder in a critically important role East Suffolk
Recuriter: East Suffolk Council

Deputyship Caseworker

Essex County Council
£23344 - £26620 per annum
Deputyship CaseworkerPermanent, Full TimeUp to £24,309 per annumLocation
Recuriter: Essex County Council

Engineer

Bristol City Council
£40,221 - £51,515
As part of a friendly and enthusiastic team, you will play an important role in designing innovative urban transport and public realm projects 100 Temple Street Redcliff Bristol BS1 6AN
Recuriter: Bristol City Council

Intelligence Manager - Quantitative and Qualitative Research

Essex County Council
Up to £69262 per annum
Intelligence Manager - Quantitative and Qualitative ResearchFixed Term, Full Timeup to £69,262 per annumLocation
Recuriter: Essex County Council

Research Strategy and Governance Manager

Essex County Council
Up to £70364 per annum
Research Strategy and Governance ManagerFixed Term, Full Timeup to £70,364 per annumLocation
Recuriter: Essex County 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.