FINANCE

Avoiding the iceberg

David Phillips suggests steps the next government and councils should take to alleviate the sector’s crisis, and shore up and improve the quality and efficiency of local services.

After the austerity of the 2010s, a look at the headline figures for local government funding would suggest councils should now be feeling more financially secure. Their core funding per resident is up around 10% in real-terms since 2019-20, after adjusting for whole-economy inflation. That is nowhere near enough to undo previous cuts, but enough to ease the pressure on council budgets and allow some expansion and improvements to services?

Alas no – as you will well know. The reason is that demand and costs are surging for some of the most expensive services required by people with the greatest needs. Here are just a few examples:

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