This Council notes the content of the recent submission of the Conservative-controlled Local Government Association (LGA) to the Treasury entitled ‘Spending Smarter: A Shared Commitment’. This document raises concerns about the future sustainability of local authorities in light of additional costs expected to fall upon councils in the next few years. These costs – estimated by the LGA at £6.3 billion annually in addition to a £3.6 billion increase in business as usual costs – arise as a result of policy decisions such as cutting social housing rents by 1% a year, business rate revaluation and accompanying administrative burden, and the introduction of universal credit.

Regardless of personal views on the policies in question it is clear that these have enormous financial implications for local authorities and have not as yet been mitigated by the Treasury in order to ease the pressure on councils. In particular Council notes the words of Councillor Gary Porter, Conservative Chair of the LGA, commenting on the LGA’s analysis and stating that: “Enormous pressure will be heaped on already stretched local services if the government fails to fully assess the impact of these unfunded cost burdens when making its spending decisions for the next five years. Vital services, such as caring for the elderly, protecting children, collecting bins, filling potholes and maintaining our parks and green spaces, will simply struggle to continue at current levels.”

Council is supportive of the LGA’s findings and the views of Councillor Porter and therefore agrees to write to the Treasury expressing similar concerns and calling for a fairer and more substantial funding settlement – taking into account these additional cost pressures - ahead of the November Spending Review.

It was moved and seconded that:

“This Council notes the content of the recent submission of the Conservative-controlled Local Government Association (LGA) to the Treasury entitled ‘Spending Smarter: A Shared Commitment’. This document raises concerns about the future sustainability of local authorities in light of additional costs expected to fall upon councils in the next few years. These costs – estimated by the LGA at £6.3 billion annually in addition to a £3.6 billion increase in business as usual costs – arise as a result of policy decisions such as cutting social housing rents by 1% a year, business rate revaluation and accompanying administrative burden, and the introduction of universal credit.

Regardless of personal views on the policies in question it is clear that these have enormous financial implications for local authorities and have not as yet been mitigated by the Treasury in order to ease the pressure on councils. In particular Council notes the words of Councillor Gary Porter, Conservative Chair of the LGA, commenting on the LGA’s analysis and stating that: ‘Enormous pressure will be heaped on already stretched local services if the government fails to fully assess the impact of these unfunded cost burdens when making its spending decisions for the next five years. Vital services, such as caring for the elderly, protecting children, collecting bins, filling potholes and maintaining our parks and green spaces, will simply struggle to continue at current levels.’

Council is supportive of the LGA’s findings and the views of Councillor Porter and therefore agrees to write to the Treasury expressing similar concerns and calling for a fairer and more substantial funding settlement – taking into account these additional cost pressures - ahead of the November Spending Review.”

It was moved and seconded as an amendment that:

“Council notes the content of the recent submission made by the Local Government Association to HM Treasury entitled ‘Spending Smarter: A Shared Commitment’.

This document recognises that the forthcoming Comprehensive Spending Review rightly prioritises the radical devolution of power within England and outlines how local government can be part of the solution to streamlining public services, fostering economic growth and integrating health and social care, all while saving the public purse almost £2 billion a year by the end of the Parliament.

In particular, the report makes the following summary recommendations:

•       Enable wider integration of social care and health services to deliver savings and improve outcomes.

•       Implement a place-based budget approach for delivering all local services through a Local Public Services Fund, as part of at least five devolution deals.

•       Promote growth and productivity by accepting the case for further local decision making and calls for devolution of, or local influence over, more than £60 billion of growth, skills and infrastructure funding.

•       The transformation of the business rate mechanism and providing a four year local government finance settlement.

•       Calls for an assessment of the unfunded cost burdens that core council budgets are going to face over the spending review period.

The Council is supportive of these recommendations and agrees to write to HM Treasury expressing this view, taken in the context of the Greater Manchester submission to the Spending Review, calling for a considered and smarter place based settlement as its desired outcome.”

Following a debate on the matter, the amendment was put to the vote and carried unanimously. Consequently, the substantive Motion was declared carried.

RESOLVED: That the Council notes the content of the recent submission made by the Local Government Association to HM Treasury entitled ‘Spending Smarter: A Shared Commitment’.

This document recognises that the forthcoming Comprehensive Spending Review rightly prioritises the radical devolution of power within England and outlines how local government can be part of the solution to streamlining public services, fostering economic growth and integrating health and social care, all while saving the public purse almost £2 billion a year by the end of the Parliament.

In particular, the report makes the following summary recommendations:

•       Enable wider integration of social care and health services to deliver savings and improve outcomes.

•       Implement a place-based budget approach for delivering all local services through a Local Public Services Fund, as part of at least five devolution deals.

•       Promote growth and productivity by accepting the case for further local decision making and calls for devolution of, or local influence over, more than £60 billion of growth, skills and infrastructure funding.

•       The transformation of the business rate mechanism and providing a four year local government finance settlement.

•       Calls for an assessment of the unfunded cost burdens that core council budgets are going to face over the spending review period.

The Council is supportive of these recommendations and agrees to write to HM Treasury expressing this view, taken in the context of the Greater Manchester submission to the Spending Review, calling for a considered and smarter place based settlement as its desired outcome.