Dear constituent,

Thank you for contacting me about local government funding.

Councils are on the frontline delivering the services that people rely on and which support and enrich our communities every day. I pay tribute to care staff, refuse collectors, social workers, and all local government staff for their significant contribution in the national effort to deal with COVID-19.

Despite financial pressures, the response of local authorities during the pandemic has been remarkable. They have worked to protect local communities and businesses while continuing to deliver existing services. COVID-19 has in turn placed significant pressure on local authorities’ finances, which in many cases were already under strain going into the pandemic.

According to the National Audit Office (NAO), total funding across England has fallen in real terms by 56.3% over the last decade. The Local Government Association equates this to a £15 billion reduction.

A recent NAO report found many local authorities are relying on reserves to balance their budgets; three-quarters of all councils report a funding gap and almost all expect to make cuts in service budgets this year. The NAO said a combination of high funding gaps and low reserve levels means that some local authorities are at risk of financial failure.

At the start of this pandemic, the Government pledged to support local government. Instead of listening to councils and giving them the resources they need, the Government instead asked them to increase council taxes across the country,  at a time when the UK economy is coming out of the biggest crisis in three centuries.

I urge Ministers to keep their promise to do whatever is necessary and provide councils with the support, national leadership and focus they deserve.

Thank you once again for contacting me about this important issue.

Yours sincerely,

Peter Dowd MP