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Councils are facing massive increases in costs due to spiralling inflation and the increase in energy costs, the Local Government Association (LGA) are warning today.

“The inclusion of councils in the Government’s six-month energy price guarantee announced today is a positive step which should help mitigate against some of the extra pressures councils face this year as a result of spiralling energy costs."

“Local government has great ambition to get on with the job of building homes, creating jobs, supporting businesses and investing in new infrastructure. However, massive increases in costs due to spiralling inflation and National Living Wage rises risk undermining those ambitions, by forcing councils to cut local services to meet their legal duty to balance the books."

"Inflation is not going to come down overnight; reserves can only be spent once; a local service cannot be cut twice."

Cllr Andrew Western, Chair of the Local Government Association’s Resources Board has responded to an Institute for Fiscal Studies (IFS) report which states how public service funding cuts is putting the Levelling Up agenda in danger.

“Councils want to work with central government to develop a long-term strategy to deliver critical local services and growth more effectively. Alongside certainty of funding and greater investment, this also needs wider devolution where local leaders have greater freedom from central government to take decisions on how to provide vital services in their communities.”

“The increase in local government core spending power next year, confirmed in today’s provisional settlement, will help councils deal with inflationary and other cost pressures they face.

“Today’s final settlement confirms an increase in local government core spending power, which will help councils deal with inflationary and other cost pressures they face next year."

The local government family has long warned of the growing financial challenges facing councils. Through savings and efficiencies, councils have done everything they can to deliver balanced budgets and ensure vital local services are saved from being cut. Yet for many of our members, they are now approaching or already at the point where their financial sustainability is at risk.  Today we unite to call on the Chancellor in the Autumn Statement to address the significant financial challenges faced by councils, and to protect the vital local services that our residents rely on every day.  But

“The evidence of the financial strain on councils has been growing and it is hugely disappointing that today's Autumn Statement has failed to provide funding needed to protect the services the people in our communities rely on every day."