FINANCE

Tough times ahead for public services

Public finances face their toughest outlook for 80 years and there is no magical solution on the horizon following the Spring Budget, writes Nicole Wood.

We near the end of yet another really tough financial year. Councils across the country have set their 2024-25 budgets, many making cuts to key services and nearly every council taxing the maximum 5% tax rise. Councils in intervention are making even more difficult decisions - none more so than Birmingham and its 21% tax rises over two years and £300m of cuts.

Beyond the headlines there are a total of 19 councils who sought exceptional financial support to enable them to set their budget – these come in all shapes, sizes and geographies. Despite the crises in many councils, there is no easy answer. The fiscal headwinds don't look any better – there was nothing in the March 6 Budget that should give room for complacency in local government (or any public service for that matter).

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