Council leader ‘cautious’ over local funding boost
WARNING OVER LONG-TERM FINANCIAL IMPACT DUE TO CORONAVIRUS PANDEMIC
CALDERDALE Council’s leader has given a “cautious” welcome to the finance settlement for local authorities - but says it is imperative the Government starts looking to the longer term.
The Government announced its Provisional Local Government Finance Settlement for 2021-22, prompting a response from Leader of Calderdale Council, Cllr Tim Swift (Lab, Town).
“The financial pressures already facing local government after ten years of austerity have been magnified by the significant challenges of the Covid pandemic,” he said.
“The impact of the virus will be felt not just in the current year but potentially for many more years to come.
“So whilst we welcome the news that the provisional Local Government Finance Settlement for 2021/22 will include extra money to meet Covid-19 costs and compensation for losses in income for the first three months, we do so cautiously.
“It is vital that the Government provides funding in full for the budget pressures and loss of income that local authorities will continue to experience for many months.”
Cllr Swift said outside of the funding for Covid-19 costs, the headline was a 4.5 per cent increase in spending power for local government.
“But this assumes an increase in Council Tax and the social care precept,” he added.
“This leaves the council in a very difficult position, as although we desperately need additional funding, we also know how much of a strain has already been placed on our local communities,” he said.
Cllr Swift said councils also needed further clarity on how services will be funded beyond the next year.
“The Government’s Finance Settlement and Spending Review only focuses on one year at a time, instead of the previous three-year forecasts.
“This makes it very difficult to undertake any longer-term financial planning and leaves us without a clear sustainable funding solution for local government in the difficult and uncertain years ahead,” he said.
Once the council has full details of the funding for Calderdale, its Cabinet will be releasing its budget proposals for consultation on January 11 for a four-week period.
Final decisions on the budget for 2021/22 and Council Tax will be made at the Budget Council meeting on February 22.