![]() According to the NHS Confederation, the number of over-65s in England increased by more than 400,000 in the last five years, and the older people get, the more likely they are to need care. ![]() It is not just the funding model that is hitting councils across the country, but the demand - and the cost - of what they spend it on.įirst up is social care. "Yes, council tax has gone up, but you can only push it up so far." ![]() "The austerity that came in between 2010 to 2015 hit really hard," he added. Mr Betts said this change was "fundamental" to the state of council finances. ![]() In reality, the figures have rarely settled out, with the Institute for Fiscal Studies saying the poorest fifth of councils are getting about 10% below their needs, compared with the richest fifth getting about 15% above their requirements.Īnd this is born out in a National Audit Office (NAO) report, that showed councils' spending power fell in real terms by more than 50% on a like-for-like basis between 2010-21. Image: It was under the coalition government that the funding model for councils was changed Then-chancellor George Osborne decided to reduce that funding pot, known as the revenue support grant (or RSG) and replace it by allowing local authorities to keep more of the council tax and business rates they collected.īut better off areas have higher rates, while more deprived areas can struggle to even collect council tax due to the hardship of their residents, and the promise of keeping 100% of business rates has failed to come to fruition. Many in local government - including some at Nottingham City Council - place the blame on a change of policy in 2013 over how much funding councils would be given by central government. I think it is getting to the point of tipping over now and I think central government is going to have to put some more money in, at least as a short term fix until the middle of next parliament." "I think if we don't do something in the next parliament, my guess is half the councils in the country will go bankrupt," said Clive Betts, chair of the Commons Levelling Up Select Committee, which has been carrying out an inquiry into council finances. ![]()
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