Houses of Parliament with Big Ben in the background

Local Government Crisis: Emergency funding plea from MPs as council budgets crumble

A significant number of county MPs have written to Prime Minister Rishi Sunak to try and secure emergency funding for councils, as confirmed by the County Councils Network.

The Chancellor’s Autumn Statement in November saw no additional funding for local authorities, despite widespread calls for significant investment to help ease the financial strain, and now a group of MPs have taken it upon themselves to try and secure funding to protect local services. This group is formed mainly of Conservative MPs, such as Priti Patel, Therese Coffey, Robert Jenrick, and Greg Clark, with one Labour and one Liberal Democrat also signing the letter.

Chair of the County All-Party Parliamentary Group, Cllr Ben Bradley said:

“County and unitary councils across the country are currently setting out their budgets for next year, with many proposing substantial reductions to highly valued local services as well as tightening of eligibility for care services. With council tax set to rise again this year, residents face a double whammy. No council leader will take any pride in taking this action, but they simply have no choice after the Autumn Statement left them in a significantly worse position.

“The extent of the impact can be reduced if councils are given an emergency injection of funding, and 46 MPs have signed our letter calling on the government to intervene and protect local services. The fact that we have two former Local Government Secretaries, seven former cabinet members, and support from all three main parties shows the strength of feeling on this issue, particularly amongst my Conservative colleagues.

“I’m in the privileged position of being both a council leader and MP and so I can see both sides. The Autumn Statement put more money in people’s pockets, and I understand that the public finances are tight, but councils provide important local services that millions rely on each day. We have had constructive dialogue with Downing Street, but we are urging the government to rectify the situation as soon as possible so colleagues in the Parliamentary party are able to support the vote for the final Local Government Finance Settlement next month.”

Local authorities have made no secret of the challenges that they are facing, with significant cuts having to be made to ensure that the most vital of services can continue to support communities. Whilst some are managing to cope with the increased cost and demand for services, there is a significant number that face the threat of issuing a Section 114 notice.

The provisional Local Government Finance Settlement was outlined in December and was received with much disappointment across the sector, with many feeling like not enough was being done to combat the financial struggles that councils are facing.

CCN consultation response image

The County Councils Network's response to December's Provisional Local Government Finance Settlement.

 

Councillor Barry Lewis, Vice-Chair of the County Councils Network, also commented:

“We county leaders pride ourselves on being financially prudent and not afraid to make the difficult decisions but this year we find ourselves under financial pressure like never before. We desperately need government support to stave off the extent to which we will have to make unpalatable reductions to services.

“It is encouraging that an unprecedented number of county MPs, including those from all parts of the country, share our same concerns over the funding shortfall we face. We have had constructive discussions with ministers, but we now hope the government listens to our joint campaign and provides emergency resources later [this] month.”

As the government continues to consult on next month’s Local Government Finance Settlement, the number of MPs that have signed the letter to urge government action has highlighted just how important the issue is for communities all around the nation.

 

Image credit: iStock

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