Comment on DLUHC local government spending and revenue figures
Chris Munday, Chair of the Resources & Strategy Policy Committee said:
“The latest national figures on local authority spending for the 2022/23 financial year emphasise the pressures we are under. Councils face a £3 billion funding gap over the next two years just to keep services standing still. In children’s services alone, ADCS research found that the total required to close the budget gap in-year is £778m. Disparate pots of time-limited grant funding from government and local authority investment over recent years has helped to alleviate some demand pressures. However, this is no substitute for a long-term equitable and sufficient funding settlement for all local authorities, which all children and families would benefit from.
“It is clear that the quantum of funding does not match the levels of need we are seeing in our communities. Too often funding is allocated on a competitive and short-term basis or taken out of the system completely with some residential providers, that are privately owned and backed by private equity firms, profiteering off vulnerable children and young people. This is not in the best interests of our children, nor is it a good use of public funds. On top of all this, we are increasingly worried about the rising cost of living and how many more children will fall into poverty, reducing their quality of life and leading to an increase in needs across communities. The system needs change, but this requires government to take a long-term view that recognises the pressures we are all grappling with.”
ENDS