Local authority spending in England has fallen for the first time since the introduction of the council tax in the early 1990s, according to figures published by the government and CIPFA today.
Spending data compiled by CIPFA and the Department for Communities and Local Government show that overall total service expenditure fell this year by 5.7% to just over £99.5bn.
Spending levels for 2011/12 have reduced to roughly the level they were in 2008/09, equivalent to £1,921 per person. Total service expenditure comprises all direct revenue payments and income for which the authority alone is responsible.
The figures also reveal that planning, highways and housing have had their budgets hit hardest, with spending falls of 32.1%, 20.7% and 14.9% respectively. In contrast, social care spending has risen by 1.6%.
A regional breakdown of figures reveal that local authorities in the Northwest, Northeast and Southwest are reducing their spending the most, while councils in the Southeast (excluding London) are reducing theirs by the least.
Ian Carruthers, CIPFA’s policy and technical director, said: ‘These statistics underline the difficult decisions councils have been faced with in setting their 2011/12 budgets. It is only through effective financial planning and an emphasis on efficiency that the impact on frontline services has not been greater.’
Local government minister Grant Shapps added that councils would still be spending £118bn this year, more than £5,000 per household.
‘Local authorities are planning to spend more, in cash terms, in 2011/12 than they did as recently as 2008/09.
‘By cutting waste, more joint working and improving procurement, councils can do more for less. Good councils can hold council tax down and protect frontline services.’
More details can be viewed at www.cipfastats.net/
