By Richard Johnstone | 14 March 2014
Any additional cuts to local government funding announced in next week’s Budget would compromise the ability of local government to boost economic growth, counties have warned.
The County Councils Network called on Chancellor George Osborne to not impose any more cuts on the sector in next Wednesday’s statement. The group said additional reductions would hinder the contribution of town halls to the economic recovery.
‘By 2015, local government’s core funding will have fallen by some 40% over the course of this Parliament,’ its pre-Budget statement said. ‘To ensure local government is able to radically reform public services and continue to promote growth, CCN member councils require a period of financial stability with no additional reductions on top of those already planned for 2014/15 and 2015/16.’
CCN also urged Osborne to use the Budget to extend the freedoms being given to cities through the government’s programme of City Deals to counties.
‘The Core Cities already enjoy greater effective freedoms, flexibilities, growth incentives and localised Whitehall budgets than their county council peers.
‘This is a situation CCN has demonstrated is economically counterproductive as well as manifestly unfair. The chancellor should acknowledge the contribution of counties to securing a balanced and sustainable recovery, and make a long-term commitment to devolving more freedoms, flexibilities and growth funding to counties.’
The group also reiterated concerns that the coalition’s programme of reforms to adult social care could increase the funding pressures on services already struggling from reductions.
‘CCN continues to have major concerns over the long-term sustainability of adult social care funding and the potential financial impact of demand led pressures including new duties being introduced under the Care Bill,’ it stated.
‘Recent survey research revealed that 77% of CCN member councils describe their adult social care budget pressures as “severe”, with a further 10% “critical”. Some 87% also stated that the Care Bill will significantly increase these budgetary pressures, with major concerns that the Care Bill will not be fully funded.’
All reforms resulting from the Care Bill should be assessed and met under the new burdens doctrine.
‘Unfunded reforms at a time of continuing reductions in council budgets will lead to further unsustainable strain on social care budgets.'
