A recent report by the LUHC Committee, chaired by an unnamed member, has highlighted a significant financial crisis facing English councils, with a projected £4bn funding gap for the year 2024-25. The report, as discussed by @meganekenyon and cited in the @CommonsLUHC report, emphasizes the urgent need for government action to address this shortfall to prevent severe repercussions on council services and the potential for more councils to face effective bankruptcy. Nottingham, as an example, has seen its council's spending power decrease by 28% since 2010, which is notably higher than the average reduction of 19%. This has disproportionately affected councils in poorer areas. The situation has prompted calls for reform, particularly in the council tax system, to alleviate the financial distress of local authorities. Charities have also warned about the devastating knock-on impact that the financial crisis could have on communities.
Charities warn of ‘devastating knock-on impact’ of English councils’ financial crisis https://t.co/yyObxTsjf7
Council tax in dire need of reform. https://t.co/sfM4m0v5KB
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
“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