Frontline services may face cuts warn councils
THE LEADER of North Yorkshire County Council has warned of “huge uncertainty” as a new survey reveals that just one in five of England’s largest local authorities are confident of setting a balanced budget next year without having to make dramatic reductions to frontline services.
The survey, by the County Councils Network ( CCN), comes as the organisation predicts a £ 1.7bn funding shortfall next year for its 36 councils, which they say is likely to be exacerbated by the second lockdown.
The network has called for the Government to make a multibillion- pound commitment to increase council funding in this month’s Spending Review.
CCN says that the survey shows that a failure to provide more funding at the review would result in local authorities implementing “visible and damaging change” to frontline services next year to balance their budgets – and could hamper their efforts to continue tackling the spread of coronavirus.
The respondents, who are England’s largest county and unitary councils, said that after years of austerity there is limited scope to reduce non- care services such as libraries, bus routes and school transport, and that means the most severe reductions are likely to fall on social care services for children and adults, despite pressures created by the pandemic.
Coun Carl Les, leader of North Yorkshire County Council, said: “We pride ourselves on being a well- run local authority, but the onset of a second lockdown has exacerbated underlying funding gaps in our budget, creating huge uncertainty. With expenditure owing to the virus set to rise throughoutthewinterperiod, itis imperative that the Spending Review provides clarity and, above
all, an uplift in funding for local authorities who have stepped up to the national effort.”
Councils say the Government has provided emergency funding to cover the majority of additional council expenditure to date as a result of the virus, but they face millions in lost income from council tax and business rates.
A Ministry of Housing, Communities and Local Government spokesman said: “We’re giving councils unprecedented support during the pandemic, with nearly £ 1.2bn in non- ringfenced emergencyfundingforcountycouncils.
“Additionally, their core spending power increased by £ 974m in 2020/ 21 even before emergency funding was announced.
“We will continue to work closely with councils as they support their communities through the pandemic and if any are concerned about their future financial position they should contact the department.”