From The Guardian: Analysis shows the financial predicament facing councils across England. Government funding has fallen by nearly 50% since 2010. Combined with increased demand for adult and children’s social care and homelessness services, as well as paying higher national insurance contributions for staff, growing numbers of unitary and county councils are relying on their reserves to balance their budgets.
From The Guardian: Labour MPs have expressed their fury after Tory rebels dropped their objections to council cuts because of a new £300m government fund to ease funding difficulties in mostly wealthy Conservative-run areas.
Greg Clark, the communities secretary, insisted the new cash was not a “political bung” to stop up to 30 Tories revolting against the local government settlement.
However, several Tory MPs openly acknowledged they were persuaded to back the government only after the new “transitional relief” was announced, of which about 83% will go to Conservative councils.
Labour MPs were furious that only 5% of the new relief will be going to areas run by Labour. The rest goes to councils with no overall control, coalition or run by other parties.
From The Guardian: Town halls are facing a £4.1bn a year black hole in their budgets that not even the closure of every children’s centre, library, museum and park could fill, council leaders have warned.
George Osborne’s decision to axe the central government grant to councils over the next four years came in a comprehensive spending review that the Local Government Association (LGA) chairman described as a tragic missed opportunity to protect the services “that bind communities together, improve people’s quality of life and protect the most vulnerable”.
Some of the most stretched councils warned that the changes would hit the poorest parts of the country hardest, where there were fewer businesses and taxpayers to make up for lost Whitehall grants.
The Labour leader of Newcastle city council, Nick Forbes, said the move would leave a £16m hole in his budget.