Councils still facing funding gap of £3 billion pounds

Following the publication of the finalised Local Government Finance Settlement, Liberal Democrats are concerned that the settlement does nothing to address the growing inequalities across our country.

The highly regressive council tax system means that, as the Conservative Government continue to underfund local government, subsequent council tax rises hit poorer communities the hardest.

Liberal Democrats believe there must be a reform of council tax to prevent the places with the highest demand for services for vulnerable people, struggling the most to fund it.

We need a long-term financial package that provides security for our local services.

Cllr Howard Sykes, Liberal Democrat Group Leader at the Local Government Association (LGA), said:

"Councils still face a funding gap of more than £3 billion this year. The money councils have to provide local services is running out fast and there is huge uncertainty about how they will pay for them into the next decade and beyond.

"The upcoming Spending Review is absolutely crucial for councils.

"If we truly value our local services then we have to be prepared to pay for them. Fully funding councils rather than smaller "one off" bits of extra funding is the only way they will be able to keep providing the services which make a difference to people's lives, such as caring for older and disabled people, protecting children, building homes, maintaining our parks, fixing roads and collecting bins.

"Investing in local government services will also help reduce pressure on other parts of the public sector, such as the NHS, and save money for the public purse."