Last week, the Office for Budget Responsibility (OBR) issued its Spring Forecast. Whilst there was little overall change from the autumn, what was of note was the increased emphasis on the risks facing local authority finances.
The multi-year settlement marked a welcome change of direction in funding for our members, with the recognition of funding based on need and the greater certainty that multi-year settlements provide. However, despite clear warning signs about the long-term sustainability of local government finances, the total funding available to local government is not increasing in line with rising demand.
