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Is the budget good news for local government? It very much depends on whether your glass is half full or half empty. As the Chancellor sat down from his speech – the penultimate budget before the General Election – the good news is that there were no extra cuts for local government. You could argue that there is nothing left to cut, as the sector has already been stripped bare. But previous Budgets and Autumn Statements have always managed to find some way to eek more out of town halls in a bid to balance the central government books. And just because there is nothing apparent as yet, doesn't mean there won't be something in the small print. The Treasury has had a nasty habit of nibbling away at local government budgets behind the scenes without it showing in the top line. More cash for flooding is always going to be welcome. As is cash to plug the potholes, but it is hardly a windfall. A boost to housing will provide 200,000 new homes – but it is nowhere near enough to meet the housing need in London alone. The Chancellor also announced he plans to give the Welsh executive more tax raising powers. As Scotland heads towards the referendum later this year, the door is open to more devolved powers and it is down to local government to ensure it gets in on the game. So while there is no real bad news apparent yet from the budget, is that reason enough for local government to be grateful? There is no good news either. For local government to get through the next few years, something has got to change. If there is to be no cash windfall – and let's face it, it is highly unlikely – then the sector will need to be increasingly creative to deliver economically viable communities. The Government will need to give councils the tools they need to boost their local economies and create jobs, and to work across the public sector to cut costs and reform services for the future.

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There's no bad news in the budget - but where is the good news

By Heather Jameson | 19 March 2014

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