There are 2 item(s) tagged with the keyword "comprehensive spending review".
Local government is compelled to focus on the immediate problems staring it in the face, the impact of the cuts of the last decade can’t be forgotten. However, longer-term issues that require investment need to also be considered before they creep up and get past the point where they are resolvable.
Looking at revenue firstly, the announcements in the Comprehensive Spending Review were welcomed, £4.8B additional grant over 3 years plus the ability to raise a further £3.7B through council tax and precepts over the period. However, looking at the pressures on the sector with rising demand, inflation, pay increases and the impact of the national insurance rise then in reality this probably equates to at best a standstill position.
APSE’s Local Government Commission 2030 called for a longer-term settlement whilst fair funding was addressed, immediate moves to tackle the social care funding crisis, an end to competitive bidding pots and reform of business rates. Progress is being made but we all know that it hasn’t gone far enough, or fast enough, to resolve the systemic problems of finance, and it remains unclear as to whether fair funding will ever be reviewed!
It’s time for an honest conversation about tax in the UK. Successive Governments have pledged not to increase the tax burden on the public in their manifestos and then once in power they put in place policies that do the opposite.
Just look at the shift that has taken place in tax revenues since austerity started. In 2010, local government’s core spending power of £50B was around 80% funded from local tax yield with a further 20% subsidy from direct taxation. Fast forward to 2019 and the £46B or so that local government will receive in core spending power in the coming year, is outstripped by the £52B that will be raised in local taxation. Local taxation is now clearly subsidising national spending.
Local people and local businesses are now paying significantly more in council tax and business rates for the services they receive at a time when many of the neighbourhood services, that determine the look and the feel of the place, are being decimated. Add to this the fact that fees and charges have also either been introduced or increased, in order to try and hold local services together and we really are testing people’s patience.