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Local Government Finance Settlement: LGA statement

“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."


Responding to the final Local Government Finance Settlement published today, Cllr James Jamieson, Chairman of the Local Government Association, said:

“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. However, this is based on the assumption that councils will raise their council tax by the maximum permitted without a referendum.

“Many councils are still grappling with significant challenges when setting their budgets and trying to protect services from cutbacks due to the deep underlying and existing pressures they face. It is disappointing that the Government has not acted to provide significant further support to shire district councils, which provide vital services like planning and waste and recycling collection and will see a lower core spending power increase.

“This is the fifth one-year settlement in a row for councils, which continues to hamper financial planning and their financial sustainability.

“Councils want to work with government on a long-term funding plan which ensures they have adequate resources, certainty and freedoms and can deliver world-class local services for our communities. The Government also needs to urgently publish public health grant allocations for this year so councils know how much they can budget for essential services to help keep people healthy throughout their lives, including for treating drug misuse and tackling obesity.”