Rutland Councillor describes situation for council’s as ‘perilous’ following Autumn Budget
By Grace Kennington
31st Oct 2024 4:45 pm | Local News
Councillor Andrew Johnson, Deputy Leader and Cabinet Member for Resources at Rutland County Council describes the situation for councils as 'perilous' following the Autumn Budget Statement.
Responding to the Autumn Budget from the Chancellor yesterday (30th October 2024), Cllr Andrew Johnson says "this is going to get harder, not easier," as the demand for funding in SEND and care increases but funding is not there.
In a statement released by Rutland County Council, Cllr Johnson says: "Things like changes to National Insurance contributions for businesses will increase pressure on councils whose budgets are already severely stretched."
"However," he continues, "it is the government's wider plans for investing in the public sector that are most critical. We need the government to prioritise support for vulnerable people in its future spending plans."
While he acknowledges that the government will be issuing more funding for local government via grants, he is hesitant about how much impact they will have, saying the council will need to see the details behind these plans to fully understand their impact.
He also said: "We also need serious long-term reform to the way that social care and SEND services are funded at national level. The additional funding for SEND (£1b) is a 6% increase at a time when demand for these services is rising at more than 20%."
Johnson then goes on to discuss more long-term matters for the council, saying: "Long-term financial settlements for councils are crucial for sustainable financial planning, rather than short, single-year settlements, so it is encouraging to head the Chancellor speak about this in her statement."
Johnson explains that having longer-term financial settlements would allow councils to make longer term plans for spending, rather than being limited to annual cycles because they are never sure how much money the council will have in the following 12 months.
Johnson also commented on the locally controversial subject of council tax. He said: "What is clear from the Autumn Statement is that, to achieve 3.2% real terms increase in funding, the government still expects councils to continue increasing Council Tax by the maximum currently allowed (5%), to be able to provide essential services for all residents and support the most vulnerable."
Looking to the future, the next important announcement will be the provisional local government settlement for 2025/26, which should be given in December. This gives councils a better understanding of how the new Labour government plans to fund councils over the next year, allowing them to prepare their annual budgets.
"For Rutland," said Johnson, "the key area of pressure remains the overall cost of providing care for a growing number of people who need it, including children with special educational needs and disabilities."
He ended his statement by saying: "The financial picture remains perilous for many councils. [...] We're doing all we can to make savings by changing, rather than cutting, local services. However, this is going to get harder, not easier."
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