A report by the Local Government Committee, highlighted by NS_Spotlight and discussed by UK politicians, warns of a £4bn funding gap for English councils in the fiscal year 2024-25. Without government action, local authorities risk a wave of bankruptcies. The financial distress is due to chronic under-funding over 14 years rather than poor management. Nottingham, for example, has seen its spending power decrease by 28% since 2010, significantly more than the 19% average. The report emphasizes that poorer areas have been hit hardest by funding cuts. Calls for the government to rectify the shortfall have intensified, with politicians warning that failure to act could lead to Section 114 Notices, signaling a local authority's inability to balance its budget.
Yesterday's report by the Local Government Committee into 14yrs of Tory cuts to councils and their urgent recommendation for additional funding leaves nowhere for Ministers to hide. If they still refuse to act now, the blame for any Section 114 Notice lies squarely with them. https://t.co/Thqd0oqe9p
‘They’ve absolutely decimated the childcare system, and have been getting away with it for 14 years.’ Caller Sarah, who is an early years worker, tells @mrjamesob that the government’s bonus plan for new childcare staff is just ‘another nail in the coffin’. https://t.co/rKYbaUUwKE
The Government needs to do much more to address the £4bn council funding gap projected for 2024/25. Read more in the @CommonsLUHC report below ⬇️ https://t.co/QOmUuo0OMd
'This is the government trying to fix a mess of its own making' Former Labour advisor Mike Buckley says the campaign to attract workers to the early years sector is unlikely to succeed. https://t.co/MY3q9vZaT9
“The government must act quickly to close the £4bn gap faced by English councils.” 🖊️ @meganekenyon for NS_Spotlight https://t.co/tzMfkdlB4F
LUHC Committee's new report on Financial Distress in Local Authorities confirms that the Government must fix the £4bn hole in council funding arrangements for 2024-25 or risk severe impact to council services & the prospect of more councils in England facing effective bankruptcy.
Despite Nottingham’s high levels of deprivation, our council’s spending power is down 28% since 2010 - far more than the average of 19%. As the Chair of @CommonsLUHC explains, the biggest funding cuts have fallen on councils for poorer areas. The funding system must change. https://t.co/PDOl167H4c
Important Select Committee report on council finance lays bare the dire situation created by the Tories, including overseeing a huge audit backlog. Will they take responsibly ahead of the final settlement next week? @CommonsLUHC https://t.co/QHujskZ5PO
.@helenhayes_ is right. The idea that a Warwickshire Councillor can suggest this is disgraceful. But then the Education Secretary is claiming the same. I'm afraid the Tories are blaming everyone for their 14 yrs of failure..now it's the turn of parents with special needs children https://t.co/xoVZc6LlLR
“The rocky financial position of the UK’s local authorities has emerged after decades of chronic under-funding rather than individual poor management.” 🖊️ @meganekenyon for NS_Spotlight https://t.co/VySRBjQMzP
“A new report calls on the government to close the £4bn funding gap, or face a fresh wave of bankruptcies.” 🖊️ @meganekenyon for NS_Spotlight https://t.co/BPvmIsvldf