Mayor Tracy Brabin: Financial support for local councils “will barely touch sides”

And bosses of some Conservative councils say they are “bitterly disappointed” with the announcement.

On Monday, the Government announced the local government financial settlement – the amount of support that will be offered to council’s in the coming year.

Many councils across the country were eagerly awaiting the announcement in the hope it would offer some lifeline to their strained budgets.

But following the announcement, council bosses warned that many remain at risk of effective bankruptcy despite the Government making £64 billion in funding available next year.

Bradford Council has said unless it receives extra financial support from Government it is likely to have to effectively declare bankruptcy.

The local government finance settlement announced on Monday guarantees every council a minimum annual 3 per cent uplift in their core spending power, which is the amount they have to spend from a combination of Government grants, council tax and business rates.

The increase in spending power, which was £59.7 billion in 2023/24, confirms figures set out in the local government finance settlement policy statement earlier this month.

Struggling councils have repeatedly called on the Government to provide emergency funding to protect crucial frontline services, with increases in spending power in recent years following a decade of significant funding reductions.

In a written statement Levelling Up Secretary Michael Gove said: “This settlement makes available over £64 billion for local authorities in England, an increase of almost £4 billion or 6.5 per cent in cash terms in core spending power on 2023/24.

“This is a real-terms increase which demonstrates how the Government stands behind councils up and down the country.”

As in previous years, council tax rises will be capped at 3 per cent for upper tier councils, with an option to apply an additional 2 per cent precept for social care.

Jim McMahon, shadow minister for local government, described the provisional settlement as “a prime example of sticking plaster politics.”

He added: “The Government’s reckless approach to local government risks preventing older people from getting the care they deserve, risks children not getting the protection they need, and risks families being left without a safe and secure home.

“Local authorities are bearing the brunt of 13 years of Tory economic mismanagement, compounded by spiralling inflation and a stagnating economy. This is a crisis made in Downing Street being felt by every street in the country.”

The Conservative-led County Councils Network, which represents England’s largest councils, said its members will be “bitterly disappointed” by the announcement and warned councils will now have to implement more severe reductions to services and impose higher council tax rises.

Barry Lewis, Conservative leader of Derbyshire County Council and CCN finance spokesman, said: “The CCN had put together a strong case for emergency funding next year to address the significant financial headwinds councils face which are outside of our control.

“But despite constructive discussions with ministers over recent days the government has chosen not to act.”

Mr Lewis added inevitable council tax rises and service reductions will be a “double whammy” for residents during a cost-of-living crisis.

Shaun Davies, Labour chairman of the Local Government Association, said the settlement means councils will continue to face a funding gap of £4 billion over the next two years.

He added: “It is therefore unthinkable that government has not provided desperately needed new funding for local services in 2024/25.

“Although councils are working hard to reduce costs where possible, this means the local services our communities rely on every day are now exposed to further cuts.”

West Yorkshire Mayor Brabin said: “With West Yorkshire councils facing a quarter-of-a-billion-pound shortfall over the next year, the Government has today shown an alarming lack of awareness about the financial crisis facing local government.

“Next year’s finance settlement will barely touch the sides for town halls having to cope with the rising demand for services and increased staff costs, as well as the effects of 13 years of government cuts to council funding. “Councils have a legal responsibility to provide services that cost money and the Government has yet again shirked its responsibility to fund them fairly, pushing the pain onto the people who rely on those public services