The District Councils’ Network has responded to the Budget unveiled by the Chancellor this afternoon.
Rachel Reeves announced a series of measures which could impact positively on district councils, including a real-terms increase in funding for local government overall, extra money to ease and prevent homelessness, and support for social housing.
Inevitably, specific details will remain uncertain until full details are published. These include which areas of the country will benefit most from some of these measures.
Cllr Jeremy Newmark, the District Councils’ Network finance spokesperson, said: “Against the backdrop of incredibly tight public finances, measures in the Budget provide important staging points towards reaching the step change we seek in protecting critical services provided by district councils.
“District council funding hasn’t kept up with rising demand for services – homelessness and temporary accommodation, in particular – and this is leading to an ongoing financial crisis for many councils.
“We look forward to working in partnership with ministers, in the run-up to the Local Government Finance Settlement and Spending Review, to discuss how services under pressure can receive essential Government support, and how we deliver the freedoms and flexibilities required so that councils can raise money themselves without impacting on Treasury coffers.
“Our services protect vulnerable people, drive growth and lead to much-needed housing being built, as well as preventing the illnesses and hardship that would otherwise lead to huge bills for the rest of the public sector. It’s in our shared interest that we make our services financially sustainable.”
DCN has also welcomed measures announced by the Chancellor to enhance social housing. These include £500m funding to deliver up to 5,000 homes, a five-year social housing rent settlement, reduced Right to Buy discounts and councils retaining full Right to Buy receipts.
In response, Cllr Newmark said:
“The housing affordability crisis is profound in many districts. For many people council housing offers the only hope of a safe and secure place to call home. Many district councils are anxious to get building again to make a real difference to those in the greatest need and to pay a key role in the Government’s national growth mission.
“We fully welcome the Chancellor’s measures to support social housing and seek to work with ministers to bring about further action following the forthcoming consultation on social housing.”
NB DCN has issued a separate press release on the local government reorganisation announced in the Budget.
