As we have known for a while now, the state of many councils' finances in England is dire. Demand for council services such as temporary accommodation, social care, and special educational needs and disabilities (SEND) provision has soared, yet spending power has not seen an equivalent uplift. The costs of these services are skyrocketing; this year they will cost local authorities £139 bn. Notwithstanding encouraging recent developments from the Government on the multi-year settlement among other changes, this financial situation is having a real impact on the services provided to local communities and their residents.
In our Housing, Communities and Local Government Committee report on The Funding and Sustainability of Local Government Finance, we recognise that local authorities are being asked to deliver more than ever before, but without the adequate funding to allow them to do so. To add to the challenge, this financial strain on local government is driven almost entirely by mandatory, high-cost services, over which councils have little control of the demand.
