Title

FINANCE

The answers cannot wait for long

If local government is to play the vital role required in the recovery of places and communities, it will need some clarity and medium-term certainty about the underpinning finance regime, says John O'Brien of London Councils.

Even before COVID-19 hit, the foundations set in place for the future of local government finance put in place by George Osborne five or six years ago were already beginning to look increasingly unstable.

The almost permanent inability to resolve the issue of the future form and financing of adult social care, allied to the progressive erosion of confidence that some form of retained business rates regime either could, or should, help underpin a future system, had already contributed to the sense the future was rather less clear than it had once seemed.

The financial challenges facing the sector are significant for most and, as we have seen, desperate for some.

While the recent settlement does not meet the scale of the pressing need that exists across the sector, some of the support made available will help councils keep some stability a little longer.

That, of course. does not mean there are not real and painful service reductions being implemented now, or that jobs are being lost. This brings us back to the critical need for a new financing road map.

The public expenditure outlook is tough whichever way you look at it, but for local government to be able to play the vital role required in the recovery of our places and communities, it will need some clarity and medium-term certainty about the underpinning regime.

What, for example, is the future of business taxation and what is its relationship to funding local public services?

What is the future model for delivering adult social care and how will it be funded?

What remaining ambition is there for moving towards greater sub-national fiscal powers as part of any renewed focus on devolution?

The delay in responding to some of these questions has been an understandable reflection of the scale of the uncertainty we have been going through. The answers cannot wait for too long.

John O' Brien is chief executive of London Councils

@londoncouncils

FINANCE

New professional body should give ministers pause for thought

By Paul Marinko | 06 November 2025

The news that a professional body for monitoring officers will be launched later this month will be welcomed across the sector.

FINANCE

West and North Northamptonshire deserve equivalent debt forgiveness to Surrey

By Cllr Mark Arnull | 06 November 2025

Cllr Mark Arnull explains why the Government must extend equivalent debt forgiveness to West and North Northamptonshire as offered to Surrey, and ensure fair...

FINANCE

Putting the sector in the Budget driving seat: The Budget councils deserve

By Simon Christian | 06 November 2025

Simon Christian says that while a Budget that reflects councils’ responsibilities and the urgency of the challenges ahead is vitally needed, this must be mat...

FINANCE

The new leader of the County Councils' Network sets out his vision

By Ann McGauran | 06 November 2025

As the County Councils’ Network gears up for its annual conference this month, new chair Matthew Hicks sets out his priorities and rebuts any suggestion of a...

Popular articles by John O'Brien