Warning of higher taxes and more cuts to services
‘FUNDING REFORM LONG OVERDUE’
HIGHER taxes and more cuts to services are likely unless the government takes action, political leaders have warned.
Leicestershire County Council is one of the lowest-funded authorities in the country and the current economic crisis means it will have to further tighten its purse strings.
The authority has already said it must increase tax by the full 5 per cent allowed this year, while culling 250 jobs and making cuts to services and potentially some major infrastructure projects to plug a £90 million black hole.
The council, along with others in similar positions, has written to the government to call for fundamental change to funding allocations so it does not have to continue to put the unfair burden on its residents.
The band of the 20 worst-funded councils in the country – known as the F20 – wants the government to put up another £300 million to be split between them as a temporary fix to their struggles.
However, they said the current funding system is outdated and flawed and ensures the inequalities remain. Funding reform is long overdue, they said.
“Serious funding reform is essential so that well-run authorities can continue to deliver good services,” they said in the letter.
“Financial pressure is being felt across the full range of services, not just the ones vulnerable people depend upon like social care, but the services we all benefit from such as road maintenance.” Councillor Nick Rushton, pictured, leader of Leicestershire County Council, said: “The Covid pandemic, rises in inflation fuelling the costs of living and war in Ukraine have all put our services under growing pressures.
“We must be able to keep the services all residents benefit from, such as roads maintenance, flooding prevention, schools and waste and recycling centres.
“The autumn statement brought some good news for councils, but fundamental change is needed now more than ever. “A system where a person living in a £1 million Westminster property pays just £1,000 in council tax, compared to someone paying £2,500 in a £375,000 property in Coalville, cannot be fair.”
Funding reforms have been promised by the government.
However these reforms, first announced in 2016, have been delayed for another two years. The F20 group expressed their extreme disappointment about the continued waits.
A spokesman for the Department for Levelling Up, Housing and Communities said: “We recognise the pressures councils are facing and have made almost £60 billion available over the next financial year – a 9 per cent increase on 2022-23.
“This spending boost will provide the support and funding councils need to continue delivering firstrate public services.
“The most deprived areas of England will receive 17 per cent more funding per household this year than the least deprived.”