The Summer Budget and how it affects local government



Key links:

Summer Budget on-the-day briefing

Read 'A Shared Commitment'

Read 'Future Funding Outlook'

Follow our #FutureFunding campaign

Read LGA's response to Summer Budget



Chancellor George Osborne delivered the Summer Budget at 12.30pm on July 8. Read our live blog as it happened to find out what it means for local government.  




5.55pm: Many thanks for following today's blog and tweets, we hope you find the format and information useful. Be sure to check back for future live coverage of major political events for Local Government.

5.45pm: Our on-the-day briefing is now available to download. It provides a complete summary of Local Government issues covered in the budget together with our views.

4.30pm: Here's our take on the Chancellor's Budget announcement of a Roads Fund paid for by car tax:

Local Government Association Transport Spokesman Cllr Peter Box said:

"Whilst extra funding for roads is necessary, it is disappointing that this appears to be restricted to motorways. We are facing a 42 per cent increase in traffic on local roads by 2040 and there is a £12 billion backlog of roads repairs. 

"Since no car journey begins or ends on a motorway, we would urge that this fund, which will be paid for by motorists out of their car tax, be applicable to all types of roads on a needs basis." 

4.20pm: Our on-the-day briefing will be published here shortly - but before then, thoughts are already turning to the Spending Review. 

The LGA has produced a report - A shared commitment - Local government and the spending review - which addresses the issue of the future of financing local government.

3.30pm: The LGA has responded to the Chancellor's announcement that higher income earners in social housing will have their rent raised to market value.

Cllr Gary Porter, Chairman of the Local Government Association, said:

"Local authorities welcome the principle of any additional powers to set differential rent levels based on local circumstances and housing markets, but these must remain affordable for those in work but on a low income.

"Councils, like Housing Associations, should be able to retain the additional income generated from these rents to build new homes. This would have far greater benefits for local communities than the money going to the Treasury."

3pm: The case for wider devolution is clear...

Responding to the progress on devolution deals announced in today's Summer Budget, Cllr Gary Porter, Chairman of the Local Government Association, said: 

"We are pleased to see progress on devolution deals for a number of cities and non-metropolitan areas and stand ready to work with government to ensure ambitious deals continue to be on the table for all corners of England.

"We expect many more places to come forward with ambitious devolution proposals over the coming year and we look forward to working with the Government to make these a reality."

Here's our DevoNext infographic, which outlines the importance of devolution to communities:

2.46pm: The LGA has responded to the Chancellor's announcement of an extra £30 million to reimburse councils for inter-agency fees on adoption.

Cllr David Simmonds, Chairman of the LGA's Children and Young People Board, said:

"Councils will always look for the best adoptive family to suit a child's needs and we work closely with other councils who may have approved adopters or children in need of homes that can be matched up.

"The LGA negotiated a level playing field on the fees that allow councils to recover the cost of this work, but it remains a significant burden when resources are tight. With government confirming that this is new money, the opportunity to recover these costs through this new funding arrangement should help our overstretched children's services departments."

2.25pm: The LGA has responded to the Budget.

Cllr Gary Porter, Chairman of the Local Government Association, said:

"It is right that the Chancellor has not used his Summer Budget to further reduce in-year local government funding. Councils already have to find £2.5 billion in savings this financial year and these are proving the most difficult savings to find yet. 

"Councils will now be looking to the Spending Review in the autumn which will decide the future of our public services over the next decade.

"It is likely to see councils continue to face challenging funding reductions and spending pressures over the next few years. Government's goal should be to see how overall public money can be spent smarter and more efficiently."

2.20pm: Here is a breakdown of the Chancellor's speech in a word cloud - the bigger the word, the more often used.

1.40pm: George Osborne announces a new national living wage - £9 an hour by 2020.

And with that, the Chancellor sits down. Remember, our Budget 2015 on-the-day briefing will be published at later this afternoon.

Meanwhile, here is a full transcript of the Chancellor's speech and here is the Budget book

1.30pm: Families on higher income living in social housing will pay market rate rent:

1.05pm: Devolution now

1pm: New car tax bands announced by George Osborne

12.50pm: The Chancellor on public sector pay...


12.34pm: And we're off. The Chancellor is on his feet. 

Remember to follow @LGAComms and @LGANews for live tweets of the Chancellor's speech.

11.52am: We are less than an hour away from the Chancellor's Budget speech. Here is a reminder of the challenges councils face:


11.30am: A little light reading ahead of today's Budget... can find the March Budget book here and the Chancellor's speech here

11.20am: The Chancellor has left Downing Street for Parliament. He is clutching the famous red box, which is synonymous with the budget, in a tradition dating back to 1860 when William Gladstone had a wooden box hand-crafted and covered with scarlet leather.

George Osborne used the Gladstone Box for his first Budget in 2010 but used a new box in 2011.

Made by industrial trainees at Babcock Rosyth Defence Ltd ship and submarine dockyard in Fife, the new box is made of yellow pine, with a brass handle and lock, covered in scarlet leather and embossed with the Royal initials and crest and the Chancellor's title.

11.05am: While councils have continued to deliver the services you value, they have seen a reduction of almost 40 per cent in funding over the last five years.

Our Future Funding interactive tool allows you to track the changes in spending on the services councils provide on a daily basis.

10.45am: How long will the Chancellor be on his feet for today? George Osborne's March Budget speech lasted 59 minutes . 

Here are the figures from previous Budgets:
2010: 54 minutes
2011: 56 minutes
2012: 58 minutes
2013: 54 minutes
2014: 55 minutes
@UKParliament have produced this infographic on the subject:

10.40am: A gentle reminder from Number 10...

10.25am: As expected, the Budget features prominently in this morning's newspapers.

The BBC reports that George Osborne will slow the pace of planned welfare cuts when he presents the Budget. 

Read our daily press round-up.

9.40am: Before the Chancellor stands up, we'll be looking at how the Budget could affect local government.

We'll also be looking at the LGA's campaigns and the Budget's potential impact upon them. And we'll bring you infographics and Budget facts as the day progresses.

Meanwhile, the @LGAComms and @LGANews twitter handles will live tweet the Chancellor's speech.

9.30am: The Coalition's final Budget took place in March. Read our response.

9.15am: The last time there was an emergency Budget was after the election in 2010. 

9am: Good morning and welcome to live coverage of today's Budget. When he stands up at the dispatch box at 12.30pm today, George Osborne will become the first Conservative Chancellor in a majority Tory government to deliver a Budget since Ken Clarke in 1996.