Local Government Association: Spending Review 2020 – On-the-Day Briefing

The 2020 Spending Review outlines the Government’s spending plans for 2021/22 by setting budgets for each central government department.

The local government association (LGA) have reviewed the plans and come to these conclusions.

The LGA say “ This year’s Spending Review provides more certainty for councils next year, but the long-term outlook remains unclear. Public finances will undoubtedly be under huge strain in the years ahead but investment in our local public services is critical to our national recovery next year and beyond.

It is good that the Spending Review has provided a potential increase of 4.5 per cent in council core spending power to support vital local services. However, this assumes that council tax bills will rise by 5 per cent next year, and this will place a significant financial burden on households in a year of economic uncertainty. “They mention that it is disappointing that the Spending Review did not include additional funding for public health.”

They feel it is good that the  Government is introducing a new Levelling Up Fund which will help to tackle their complex and fragmented funding system for local areas, which theyhave long warned about.

However, councils are concerned about the prospect of a competitive bidding process at a time when they are focused on protecting communities and businesses from the impact of the pandemic

You can read all of their thoughts on this in the link.

It may be of interest to local VCSE organisation who heavily rely on grants or commissioning to fund the local services they deliver.