Title

FINANCE

Sector told to brace for spending cuts

Local government could face annual spending cuts averaging 2.4% by 2029, with services expected to deteriorate as a result, a report has warned.

(c) wutzkohphoto/Shutterstock

(c) wutzkohphoto/Shutterstock

Local government could face annual spending cuts averaging 2.4% by 2029, with services expected to deteriorate as a result, a report has warned.

A study by the Institute for Government and Nuffield Foundation described the Government's inheritance on public services as ‘extremely precarious'.

It said the Government's spending plans from April 2025 onwards will mean that most services could be performing worse in 2027-28 than in 2019.

The report also warned that Labour's ‘incredibly tight spending plans' will mean the settlements for local government and other unprotected areas of public spending will decline by an average of 2.4% per year in real terms.

However, the think-tanks argued there were steps the Government could take to reform public services, including focusing on outcomes rather than inputs, prevention rather than acute provision, capital rather than day-to-day spending, frontline innovation rather than top-down command and control, and the contribution of staff to performance rather than their cost.

 

FINANCE

Local growth needs consistency, not constant reinvention

By Sir Michael Lyons | 30 October 2026

Sustainable local economic growth requires long-term regeneration partnerships, strong council leadership and consistent government support, says Sir Michael...

FINANCE

AI Innovation: Shifting from experimentation to transformation in local government

By MJ Correspondent | 29 October 2026

The shortlisted entries from last year's The MJ Awards showcased councils moving beyond pilots to embedding AI into the heart of public service delivery. We ...

FINANCE

Levelling out uneven social care provision

By Rosie Fogden | 29 October 2026

Fixing the postcode penalty for social care is key if growth is to reach all places, say Ben Franklin and Rosie Fogden.

FINANCE

A balanced first step on fiscal devolution

By David Phillips | 29 October 2026

The fiscal devolution roadmap makes it clear the system will allow areas to gain financially from growth, but with guardrails in place to cap the biggest fal...

Popular articles by William Eichler

-->