Call for shake-up of local government cash

READING BOROUGH COUNCIL is one of 27 local authorities that has joined a campaign demanding urgent action on the funding gap they face – before more councils go under.

Key Cities is a cross-party coalition that wants to see a £4bn funding boost which they say will halt the collapse of local government, and reset the relationship between local and central government.

They say the funding need has been identified by the Levelling Up Select Committee, and it is imperative Government changes how funds for local services are dispensed, to allocate grants based on the reality of a local authority’s current tax bases and needs.

The manifesto sets out policy recommendations that focus on the stretched areas of local government, will improve finances of councils, and mitigate long-term, unsustainable risks for national government.

Areas they want to see changes in include council tax reform; social care funding; housing and homelessness, and net zero.

Some of the key asks include:

£1.5bn additional funds to Special Educational Needs and Disabilities

Ringfencing funding for children’s social care based on actual local need

Reforming adult social care with commitment to remove the precept

Reforming funding for ageing populations with premiums directed to local authorities with the most need

Reinstating targets

Increasing funding for temporary accommodation

Introducing new powers to create net zero investment ecosystems.

Cllr John Merry, chair of Key Cities and Deputy Mayor of Salford City Council, said: “Since its foundation a decade ago, Key Cities has advocated for municipal government and has consistently called for more financial capacity to be granted. national housebuilding

“This need has now become acute with many local authorities of all colours experiencing an unsustainable strain.

“The recent Budget offered nothing to remedy the situation.

“It is crucial that whoever comes to power at the next election addresses this crisis on day one, by committing to a new fair funding outcome and rethinking the relationship between national and local government.”

This view was echoed by Rebecca Long-Bailey MP, Co-Chair of the Key Cities APPG, who said: “With councils up and down the country in a state of crisis, it’s imperative that the next administration takes decisive action to stabilise local government.”

The Key Cities member councils include: Bath and North East Somerset; Bournemouth, Christchurch and Poole; Blackpool; Bradford; Cumberland; Colchester; Coventry; Exeter; Gloucester; Hull, Kirklees; Lancaster; Lincoln; Medway; Newport; Norwich; Plymouth; Portsmouth; Preston; Reading; Salford; Southampton; Southend-on-Sea; Stoke-onTrent; Sunderland; Wolverhampton and Wrexham.