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Risks of retrenchment

The big risk to local government is that as cutbacks reduce services further, they expose themselves to new reputational, operational and financial jeopardy in these areas, writes Andrew Jepp.

Despite the Office of Budget Responsibility (OBR) upgrading its projection for UK growth to 3% this year, local authorities will still be feeling the effects of substantial budget cuts. This Autumn Statement will do little do hearten their mood, with scant concessions for councils that are already feeling stretched.

As a recent report by the National Audit Office (NAO) shows, austerity is already impacting on service provision. With the chancellor emphasising the need for substantial savings in public spending in today's statement the situation looks set to continue and potentially worsen.

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