LGA calls for relationship reset with new Government

The Local Government Association (LGA) has published a white paper which sets out how a new relationship could be formed between central and local government. The new relationship should provide long-term financial certainty and empower councils, which is seen as the only way for whoever forms the next government to solve the issues facing the country.

The White Paper also includes new analysis showing that councils in England now face a funding gap of £6.2 billion over the next two years. The deficit is being driven by rising cost and demand pressures to provide adult social care, children's services, homelessness support and home-to-school transport for children with special educational needs and disabilities.

A recent survey by the LGA revealed that two thirds of councils have already had to make cutbacks to local neighbourhood services this year (2024/25) including waste collections, road repairs, library and leisure services.

The LGA is urging all political parties to commit to an increase in funding for councils in the next Spending Review as well as multi-year funding settlements and plans to reform the local government finance system.

Without this commitment, the LGA is warning that council budgets will be stretched to the limit.

Cllr Kevin Bentley, senior vice chairman of the LGA, said: "We all rely on local government to keep our streets clean, collect our bins, fix our potholes, build more homes, create jobs, keep children safe and support people of all ages to live fulfilling lives.

"However, a funding gap of more than £6 billion facing local services over the next two years - fuelled by rising cost and demand pressures - means a chasm will continue to grow between what people and their communities need and want from their councils and what councils can deliver.

"On July 5, whoever forms the next government will be faced with many challenges, whether it is building more affordable housing, improving care for adults and children, reducing homelessness, boosting inclusive growth or tackling climate change.

"Local government’s offer to the next government is huge. Respect us, trust us and fund us. By working together as equal partners, we can meet the fundamental long-term challenges facing our communities.”