Briefings and responses

Despite welcoming additional funding announced in the 2022 Autumn Statement and 2023/24 Local Government Finance Settlement councils are still under intense financial pressure. Councils face ongoing inflationary and pay pressures alongside spiking demand and market challenges in areas such as children’s social care and temporary accommodation.

This response has been agreed by Lead Members of the LGA Economy and Resources Board.

Our Autumn Statement 2023 On-the-day briefing summarises the key announcements for councils and provides an initial LGA view.

The National Fraud Initiative (NFI) data sharing exercise has been supported by local authorities for several decades now. It has an important place in counter fraud activities, as well as work to recover and reduce error and debt.

The evidence of the financial strain on councils has been growing and today’s settlement does not provide enough funding to meet the severe cost and demand pressures which have left councils of all political colours and types warning of the serious challenges they face to set balanced budgets next year.

The evidence of the financial strain on councils has been growing. The settlement does not provide enough funding to meet the severe cost and demand pressures which have left councils of all political colours and types warning of the serious challenges they face to set balanced budgets next year. Councils in England continue to face a funding gap of £4 billion across this year and next. The 2024/25 provisional settlement does not change the funding gap facing councils.

Despite welcome new funding announced in the 2022 Autumn Statement, a combination of sharply increasing cost and demand pressures means that the sector is in a parlous financial position. Much-valued services, frequently focused on the most vulnerable in society, are under pressure and at risk. Additional government support is needed urgently to ensure local financial and service sustainability.

The current Household Support Fund (HSF), which contributed £840 million to English councils’ provision of local welfare support in 2023/24, is set to end on 31 March 2024.

The current flexible use of capital receipts scheme, which has run since 2016/17 and has now been extended until March 2030, has been welcomed by councils.

The LGA is calling for the Government to ensure that all councils have sufficient funding to deliver their 2023/24 budgets, set balanced budgets for 2024/25 and develop medium-term financial strategies that are not characterised by substantial funding gaps.