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Council spending down 30% - and housing's the biggest loser

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Council spending down 30% - and housing's the biggest loser

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Published by Max Salsbury for 24dash.com in Housing and also in Finance, Local Government

Council spending down 30% - and housing's the biggest loser Council spending down 30% - and housing's the biggest loser

Image: Money via Shutterstock

Local authority spending in England is estimated to have fallen by just under 30% over the course of this Parliament, with housing the biggest loser in the cuts.

Data from the Department for Communities and Local Government (DCLG) and the Chartered Institute of Public Finance and Accountancy (CIPFA) shows that local authorities' per capita spending will have fallen by 14.5% in cash terms by 2014-15, when compared to the last financial year of the last Parliament in 2009-10.

When adjusted for inflation this represents a steep drop of 29.1%, a significant reduction in councils' spending power.

The biggest losers in terms of service provision will be housing with a 7.8% reduction in budgeted spending, followed by education with a 7.6% cut.

Other areas seeing significant reductions are culture (-6.3%) and highways and transport (-6.2%).

Rob Whiteman, CIPFA’s chief executive, said: “The continued sharp downward trajectory of local authority spending in both cash and real terms shows the significant financial challenge councils have faced over the past few years. Many authorities have managed this reduction well and continue to live within their means, but we are now starting to see some councils face real and immediate financial pressures.

“If we are to prevent the financial failure of vulnerable local authorities, we must recognise that some councils have been hit harder than others and will need more support. But also that there is a real and pressing need for fundamental reform of the financing of local government if we are to see it not just survive but succeed and thrive over the coming years.”

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