A Bing produced blog on local government cuts
The Impact of Local Government Funding Cuts on Public Services
Local government is responsible for delivering a range of vital public services, such as social care, housing, education, transport, waste management and libraries. However, these services have been severely affected by funding cuts from central government over the past decade.
According to the National Audit Office, central government funding for local authorities has fallen by nearly 50% since 2010-11. This has led to a 17% reduction in councils' spending on local public services since 2009-10, which amounts to 23% or nearly £300 per person.
The funding cuts have not been evenly distributed across the country. Some areas have faced much deeper cuts than others, depending on their level of deprivation, reliance on central grants and ability to raise revenue from council tax and business rates. For example, London boroughs have seen their spending power fall by 30% per person since 2009-10, while shire counties have experienced a 15% drop.
The funding cuts have also had a disproportionate impact on certain services and groups of people. Services that are not protected by statutory duties or ring-fenced grants have borne the brunt of the cuts. These include cultural and leisure services (such as libraries, museums and parks), planning and development services (such as building control and environmental health) and support services (such as legal and financial advice). Spending on these services has fallen by more than 40% since 2009-10.
Meanwhile, demand for some services has increased due to demographic changes, rising costs and social pressures. These include adult social care (such as care homes and home care), children's social care (such as child protection and fostering) and homelessness services. Spending on these services has risen by more than 10% since 2009-10, but this has not been enough to meet the growing needs of vulnerable people.
The funding cuts have also had knock-on effects on other public sector organisations and civil society groups that rely on local government for funding or partnership working. These include schools, health services, police forces,
fire brigades, charities and voluntary organisations. The reduction in local government spending has reduced their capacity to deliver quality services and support communities.
The Covid-19 pandemic has added further pressure on local government finances. The pandemic has increased demand for some services (such as public health) while reducing income from others (such as parking fees). It has also created new costs for councils (such as personal protective equipment) while limiting their ability to raise revenue (such as council tax collection). The government has provided some extra funding for councils to cope with Covid-19 (£12bn in total), but this has not been enough to cover all the additional costs and losses.
Looking ahead, local government faces an uncertain financial future. The government has delayed its plans to reform the system of local government finance until after the next spending review in autumn 2023. This means that councils will continue to operate under a complex and outdated system that does not reflect their needs or responsibilities.
Moreover, the government has not given any clear indication of how much funding it will provide for local government beyond 2022/23. This makes it difficult for councils to plan ahead
and invest in long-term solutions. It also creates a risk that councils will face further funding gaps or shortfalls if demand continues to rise or income falls.
Local government is at a crossroads. It needs more resources and autonomy from central government to deliver high-quality public services that meet the needs of local communities. It also needs more transparency and accountability from central government to ensure that funding is fair
and sufficient.
Without these changes, local government will struggle to fulfil its role as a key partner in tackling some of the biggest challenges facing our society today: such as climate change,
social inequality
and economic recovery.
Sources:
[1] Local Government in England: A Pivotal Year - National Audit Office
[2] English Local Government Funding: Trends And Challenges In 2019 And Beyond - Institute For Fiscal Studies
[3] UK Councils Slashing Services To Meet £3.2bn Budget Shortfall - The Guardian
[4] Local Government Funding In England - Institute For Government
[5] Local Government In England ‘Hollowed Out’ Under Conservatives - The Guardian