The Local Government Association (LGA) has reduced its funding gap by £16m but still faces a forecasted deficit of about £8m over the next four years, it has emerged.
An LGA spokesperson said the original £24m gap identified in its medium-term financial strategy had been ‘significantly reduced' by securing a pension contribution holiday, which will save £12m over the next three years. They also cited ‘improved financial performance achieved by securing additional government funding for new improvement programmes'. An additional £5m of externally funded improvement programmes have been secured since the LGA proposed slashing its workforce from 540 to 478 or 11.5% as part of its original restructure plans earlier this year.
