Title

LOCAL GOVERNMENT ASSOCIATION

Councils need financial support to help residents and businesses through crisis

The County Councils Network, alongside others, will be making the strongest case possible to ensure that local government is adequately funded through what is going to be an extremely difficult period, says James Maker.

The present cost of living crisis has become the dominant issue facing households across the country. Colleagues in the sector are stepping up their efforts to support those who are the most vulnerable – and many more who will be impacted.

In recent weeks there has been an increasing focus on the impact of the inflationary crisis, not just on people but on businesses, with costs rising across the board. The same applies to local government, where rising costs could lead to some particularly difficult challenges for budgets this year and next.

Research by the County Councils' Network (CCN) in June found the costs of inflation for our member councils in 2022-23 has risen by an estimated 92% since they set their budgets in February. The survey projected those councils had £1.5bn in extra revenue and capital costs, with the Local Government Association similarly estimating a £2.4bn cost for the entire sector. Both figures were based on inflation at the time.

Even before this, the extra funding from last year's Spending Review was already eaten up by pre-existing inflation and demand pressures. Faced with rapidly rising revenue and capital costs, not least in roads maintenance, adult social care, and energy, CCN estimates at least £730m of additional costs this year are unfunded for our member councils – a number that will only rise as inflation peaks.

Under the previous Government's Spending Review, the next two financial years for local government were set to be ‘cash flat'. This presented a challenge then. Now circumstances are radically different.

Local public services will have an essential role over the coming period in supporting residents and businesses through the cost of living crisis. The level of support councils can offer to residents is directly influenced by the level of support they receive from the centre.

With the announcement of Liz Truss as the new Prime Minister, an emergency budget and Spending Review in the autumn is highly likely to follow. CCN, alongside others, will be making the strongest case possible to ensure that local government is adequately funded through what is going to be an extremely difficult period.

James Maker is director of policy and communications at the County Councils' Network

@CCNOffice

LOCAL GOVERNMENT ASSOCIATION

Reform council leaders set out 'clean up' achievements

By Ann McGauran | 06 September 2025

The leaders of four Reform UK controlled county councils took to the platform at their national party conference to set out steps they have taken to uncover ...

LOCAL GOVERNMENT ASSOCIATION

LGA: SEND transport costs could hit nearly £2bn this year

By Dan Peters | 04 September 2025

Council spending on home to school transport for children with special educational needs and disabilities (SEND) could reach nearly £2bn this year, the Local...

LOCAL GOVERNMENT ASSOCIATION

It's extremely unlikely that SEND transportation is a root cause of unsustainable spending

By Jonathan Holden | 04 September 2025

Claims about free taxis for pupils with Special Educational Needs and Disabilities (SEND) being ‘used and abused' are wide of the mark, and focus should inst...

LOCAL GOVERNMENT ASSOCIATION

How councils will fare under Fair Funding 2.0

By Jonathan Meek | 04 September 2025

Simon Christian and Jonathan Meek analyse the impact of the Fair Funding Review 2.0 on different council types and highlight the winners and losers among the...

James Maker

Popular articles by James Maker