Improved public finances should resource local government

New figures published by the Office for National Statistics have reported that the government logged a £2 billion surplus last month, leading to calls for money to be given to councils.

According to the ONS, public sector net borrowing in the latest full financial year was £39.4 billion, noted as £6.4 billion less than in the previous financial year and £5.8 billion less than official expectations set out by the Office for Budget Responsibility.

Additionally, public sector net borrowing in the current financial year-to-date (July 2018) sits at £12.8 billion, which is £8.5 billion less than in the same period in 2017 and the lowest year-to-date (April to July) net borrowing for 16 years.

Richard Watts, chair of the Local Government Association’s Resources Board, said: “Councils and their staff have strained every sinew to support local communities and economies through years of austerity. If public finances have improved, it is vital that the government addresses the growing funding gaps facing our local services. Investing in local government will boost economic growth, reduce demand for services and save money for the taxpayer and others part of the public sector, such as the NHS.

“Local government in England faces an overall funding gap of almost £8 billion by 2025 just to maintain services at current levels. Councils have shouldered more than their fair share of austerity and have tried to reduce any impact on residents, but there is only so much they can do and the financial challenges they face are growing. More and more councils are struggling to balance their books and others are considering whether they have the funding to even deliver their statutory requirements.”