Funding Local Services

Councils across the country are facing a financial emergency, which risks threatening the vital services people rely on. Yet, instead of listening to local leaders’ concerns, the Government has passed the responsibility for difficult decisions onto local authorities, giving them the option of increasing council tax when people are struggling.

At the Autumn Statement, the Chancellor announced that local governments providing social care will be able to increase council tax by up to 5%, while those that do not will be able to increase it by up to 3%. This was announced alongside a freeze to income tax thresholds until 2027-28, which means people will be paying more in income tax as well.

I am concerned that council tax rises will not only be another burden on the British taxpayer, but will also risk making regional inequalities worse as richer areas can raise more money than poorer ones.

I know local authorities can bid for additional funding from investment programmes such as the Levelling Up Fund, but they need greater certainty and longer-term settlements. I do not believe they should have to spend valuable time and resources competing for funding, especially when there are serious concerns about how those funds are allocated.

Rising inflation also means the value of that funding is decreasing, which is putting vital projects at risk. I therefore voted in favour of an amendment in the Levelling Up and Regeneration Bill that would have protected the value of Government funding awarded to Combined Authorities and Combined County Authorities to deliver specific projects. Unfortunately, this was voted down by the Government.

I believe local communities could achieve much more if they were given the power to make decisions themselves, which is why I am supporting calls for them to be given more financial autonomy.

As a first step, I am supporting calls for a Community Right to Buy, which would give local communities priority to buy vital assets, including pubs, football clubs and high street shops. This would not only help them generate revenue, but it would also give them greater financial security and protect the assets that matter to local people.

I will continue to lobby the Government to properly fund local services.