Councils in Crisis Report from New Economics Foundation

The New Economics Foundation have published a report; Councils in Crisis: local government austerity 2009/10 - 2024/25. 

Comparing local authority funding across time is complicated as the composition of funding has changed, as well as the demographics and needs of the populations local authorities serve. Nevertheless, the report's indicative estimates find:

  • Non ringfenced government grants to local authorities have fallen from £32.2 billion in 2009/​10 to £4.5 billion in 2019/​20 and are expected to be cut further by 2024/​25.

  • Despite local authorities retaining a proportion of business rates and growth in business rates revenue, local authorities still have significantly less resources available to them in 2019/​20 than in 2009/​10. They are only expected to enjoy a small increase in funding between 2019/​20 and 2024/​25, largely due to increases in council tax that are higher than inflation.

  • Over the same time period, demographic and price pressures have driven costs of meeting need up significantly. We compare how much local authorities have available to them with how much they would need to provide services at the level of access and quality in 2009/​10, finding that local authorities will face a funding gap of £25.4 billion by 2024/​25.

  • There will be a funding gap in all regions of England. The North West will face the biggest per capita gap of £535 per person by 2024/​25.

To view the report, click here

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