Displaying items by tag: local government

MPs have issued a stark warning that the Government must address a £4 billion funding shortfall in council budgets to prevent more local authorities from becoming bankrupt. In the past six years, eight councils have been unable to balance their budgets, compared to none in the previous 18 years. The cross-party levelling up committee highlighted the urgent need for action, with increased demands in social care, children's services, and homelessness exacerbating the crisis. The Local Government Association warns that one in five English councils are on the verge of bankruptcy, with many unable to fund essential services. Despite the Government's proposal to increase council funding by 6.5% for 2024-5, MPs argue this is insufficient to close the £4 billion gap. The Local Government Association acknowledges these challenges, foreseeing inevitable council tax hikes and service cuts. Despite the £600m support package for councils announced last week, MPs stress the need for more comprehensive financial solutions.

The Local Government Association (LGA) has warned that the various schemes designed to support economically inactive individuals back into work are failing to meet their needs. A study commissioned by the LGA revealed that 51 national job support programmes are not coordinated and only a few specifically address economic inactivity. According to the Office of National Statistics, around 8.7 million people aged 16 to 64 in the UK were economically inactive between May and September. The LGA argues that many individuals who are fit for work and want a job do not receive support from job centres because they do not claim out-of-work benefits, resulting in unfilled vacancies. It called for better collaboration between Whitehall departments and local councils to address the complex reasons why people are economically inactive, such as health conditions or a lack of skills.

The number of children in care, which has risen 36% in a decade, is putting ‘unprecedented pressure’ on local authorities' budgets. The Government provides councils with £4.8bn for ‘vital front-line services’, including children's care. Funding a child in residential care costs £4,000+ per week. In 2015, 69,000 children were in care: by March 2020, the figure was 80,080. The rise is explained by, among other things, foster carers not keeping up with increased demands. With local authorities spending more time on this growing need, they are unable to do more early family intervention rather than taking children into care. A trial scheme across five counties is looking to address this challenge. The No Wrong Door programme, funded by the Department for Education and the local authority, brings therapists, police and social workers together within the home to work with families before they reach crisis. Since April, the number of children in care aged 12-17 has reduced by 5%.