Response to the local government settlement

LGA media release 19 December 2012

Responding to the announcement of the local government settlement, Sir Merrick Cockell, Chairman of the Local Government Association, said:

"Today's confirmation of a further reduction in funding for local services comes on top of the unprecedented cuts councils already have to implement. This is bad news for local services and undermines the role councils can play in promoting economic recovery.

"It is good that the Government has taken significant steps to soften the possible negative financial impacts of changes to business rates distribution and funding for education services. Despite these sensible moves, councils are still exposed to some sizable new costs and risks which could draw money away from other services.

"Local government has borne the brunt of cuts to public spending and today's announcement confirms that this will continue to be the case until 2015. What was scheduled to be an extremely challenging 28 per cent reduction in council funding will now exceed 33 per cent and, for some councils, may go much higher. In comparison, Whitehall departments' budgets are being cut by on average 8 per cent. This pattern cannot be repeated into the next spending review period. Councils are one of the few parts of the public sector which actively promote economic growth. Curtailing that role hampers Britain's economic recovery."

ends

Author: LGA Media Office
Contact: LGA Media Office, Telephone: 020 7664 3333

Notes to editors

A full analysis of the settlement is published below:

LGA briefing on the settlement


20 December 2012

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