English councils to remain poorer than in 2010 despite funding rise, says report

"Councils in England will still be poorer by the end of this parliament than they were in 2010 despite Labour's funding increases, according to analysis by the Institute for Government (IfG). Funding cuts from 2010 to 2019 were so severe that they left gaps that could not be filled even by five years of above-inflation increases, leaving local authorities increasingly reliant on emergency funding and capable of only providing legally mandated services, the report shows."

"The government increased local authority funding by more than 4% in real terms this year, and has promised an increase of more than 1% above inflation each year for the next three years. However, the IfG report suggests the damage done by years of cuts is so severe that many people will not notice any difference to their local services. Stuart Hoddinott, the author of the report, said: Most public services struggled when spending was cut during the early 2010s, but few as much as local government."

Funding cuts from 2010 to 2019 created gaps that five years of above-inflation increases could not close. Recent increases include over 4% real-terms funding this year and commitments of more than 1% above inflation annually for three years. Despite these rises, cumulative reductions mean many people may not see improved local services. Per-person spending on local authority services excluding social care fell by 38% over 15 years. Councils have nearly 15% less per-capita spending power than in 2010, and some are using reserve funds to maintain statutory services.

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