FINANCE

Financial resilience can't be kept waiting much longer

Unitary and county councils queuing up for exceptional financial support demonstrates that the overall funding envelope simply isn’t large enough, says Ian Miller.

(c) pitchr/Shutterstock.com.

The Government wants to abolish district councils: the English Devolution White Paper made that clear. Perhaps that's why the finance settlement for districts is so poor – three-quarters of districts will see zero increase in core spending power, coupled with flagrant disregard of new burdens principles in allocating funding that is supposed to cover increased National Insurance contributions. If districts are to be abolished in two or three years, the Government may be presuming that financial pressures such as homelessness don't need to be solved.

More resources from government, which might mean increased or new taxes to fund adult social care, seem an unavoidable part of the solution. But there is so much more that could be done under devolution to empower councils to generate more income.

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