LGA responds to 2019/20 Local Government Finance consultation

"Those affected will be pleased that the Government is taking steps to address this issue next year. The LGA will be encouraging all our member councils to respond to this consultation. "


Pound coins

Responding to the 2019/20 Local Government Finance Settlement consultation published today, including proposals to tackle Negative Revenue Support Grant next year, Cllr Richard Watts, Chair of the Local Government Association’s Resources Board, said:

“Many councils have been hugely concerned about the end of core central government funding next year and having to pay vital business rates income to the Government as a result of negative Revenue Support Grant in 2019/20. 

“Those affected will be pleased that the Government is taking steps to address this issue next year. The LGA will be encouraging all our member councils to respond to this consultation. 

“However, all councils face significant funding pressures and huge financial uncertainty over the next few years and into the next decade. Local government in England faces an overall funding gap of almost £8 billion by 2025 just to maintain services at current levels. The next Spending Review will be make or break for local services and must recognise the urgent need to tackle the funding gap facing local government to improve the lives of residents and reduce pressure on other parts of the public sector.

“We would urge the Government not to increase the New Homes Bonus threshold again. This would risk putting the brakes on housebuilding schemes and growth-boosting projects at a time when our housing shortage is one of the biggest challenges facing the nation and further exacerbate the financial challenges facing some councils.”

Notes to editors

The LGA has launched a campaign ahead of the Spending Review to build the case for investment in local services. Read our new report Local government funding: moving the conversation on.