Save Our Services

I share deep concerns about this issue, which has placed an unsustainable burden on local authorities and jeopardized the vital services our communities rely upon.

The previous Conservative Government’s policy of forcing local authorities to use their reserves to subsidise revenue expenditure contradicted established systems of prudent financial management. In the case of Cornwall, the Conservative-run authority managed to transform the Council from one of sound financial management with healthy reserves to now staring down the barrel of insolvency. The irresponsible Conservative approach, coupled with their expectation for Councils to do more with less, has plunged large numbers of councils into financial crisis.

The burden on councils has increased to such an extent that they are forced to make impossible choices— for example, whether to fund Special Educational Needs and Disabilities and social care provision, bus services, or waste collection. These are decisions no community should have to face.

While we welcome the Government’s commitment to providing local authorities with multi-year settlements—a policy we have long advocated – the decision to allocate funding on a “need and demand” basis raises significant concerns. This new system risks overlooking the unique challenges faced by rural areas, where the sparse and isolated nature of communities drives higher costs for essential services, creates recruitment challenges and necessitates greater public subsidies for transport. The suggestion to repurpose funding previously allocated under the Rural Services Delivery Grant further jeopardizes rural councils, despite the Grant’s critical role in supporting emergency services and social care.

Moreover, using deprivation as an indicator of demand fails to account for local authorities with higher numbers of elderly or vulnerable residents, whose needs place additional demands on services. With councils under increasing pressure to deliver further scrutiny in planning decisions, housebuilding, and NICs changes, it is essential they are funded robustly to meet these challenges.

I will continue to urge the Chancellor to address this crisis and provide a funding settlement that reflects the impact of rurality and sparsity, as well as the fair funding formula. It is imperative that local councils receive the support they need to safeguard essential services and support the workers who deliver them.