FINANCE

Rising to meet the new risks

Councils will be exposed to new risks - reputational, operational and financial – and increasing pressure from residents eager to see the recovery come to life in the provision of better and higher quality services, writes Andrew Jepp.

The Chancellor's Budget produced a number of mixed messages for local government. Momentum towards greater devolving of powers to local government is offset by the knowledge that local government is facing yet more cuts.

Undoubtedly, the news that the Office of Budget Responsibility has revised its growth projection up to 2.5% this year is to be welcomed, as was the Chancellor's promise that the squeeze on public spending would end a year earlier. However, for local government, the story remains the same and it is yet to see this growth trickle down into the public purse. 

A projected £13bn of cuts to government departments will hit local authorities across the country, and this squeeze will no doubt have an impact. This is especially true for those councils that are still trying to cope with the effects of earlier budget cuts, and the resulting service reductions in key areas such as community safety, road maintenance and social care.

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