Press Release

Spending squeeze risks cuts in services - LGA

24 April 2009

The squeeze on public spending from 2011 looks certain to lead to shortfalls in town hall coffers, council leaders warn today.

Wednesday's Budget estimated that growth in public spending will fall from 2.1 per cent to 0.7 per cent in real terms from 2011-12 to 2014. The Local Government Association, which represents more than 350 councils in England, warned that the spending slowdown would lead to tough choices for councils, which had funding increases below other services such as health, education and transport in the last three-year spending round.

Margaret Eaton, chairman of the Local Government Association, said: "A future squeeze in public spending risks jeopardising local services.

"Vital frontline services to local people could be affected unless councils are able to take the best decisions for local people. They must have greater freedom to decide how best to spend scarce resources for the benefit of local people.

"Just as households are doing across the country during the recession, we all have to tighten our belts, but Ministers should realise that they can only keep on squeezing out savings for so long and that further efficiencies will not solve the pressures caused by cuts in funding.

"Local government is already the most efficient part of the public sector, achieving well over a billion pounds of savings over each of the last few years and consistently outperforming government targets. Councils will continue to be as efficient as they can, but any decision to cut budgets further will leave them with difficult decisions about priorities at a time when there is ever greater demand on services."