The Funding Crisis in Local Government

Submitted by: ALDC
Mover: Cllr Joe Harris.
Summation: Cllr Bill Revans.

Conference notes:

1. That the Local Government Association (LGA) estimates that councils in England have a funding gap of œ4 billion over the next two years.
2. One in five English local authorities are in danger of issuing a Section 114 notice this year or next.
3. Half of English councils are not confident that they have the money to fulfil their legal duties next year.
4. Concern about funding for local authorities is cross-party.

Conference recognises similar pressures and concerns faced by councils in Scotland and Wales and calls on the Scottish and Welsh Governments to work with their councils to take action.

Conference further notes that:

1. The National Audit Office estimates that between 2010/2011 and 2021/2022 the real spending power of English councils was reduced by 29%.
2. The 2023 Autumn Spending Statement failed to address the needs of local authorities and the people they serve.
3. The older age population is increasing faster than the general population and an ageing population is increasing the complexity of the care required - the Health Foundation suggests that œ14 billion may be needed by 2030/31 to fund Adult Social Care alone.
4. The number of looked after children is 80,000 and rising.
5. Many councils in England are struggling to meet the demand for SEND support already.
6. Councils are struggling to fund the increase in the need for homeless placements and supported accommodation.
7. Councils are under increasing pressure on costs, in particular to meet inflation and rising staff costs, including the National Living Wage.

Conference believes that:

1. Local authorities play a vital role in delivering local services.
2. The current funding arrangements are unable to meet the needs of local authorities.
3. The government's approach to encourage councils to use reserves and capital receipts to subsidise their revenue expenditure is fundamentally wrong and unsustainable.
4. Most councils have reached the limits of what can be achieved by efficiency savings; further cuts can only come from core services highly valued by the communities councils serve - these are non-statutory and include leisure centres, swimming pools, many libraries, bus routes and the arts, among others.
5. If properly funded, local government can play a key role in tackling climate change and protecting our environment.
6. Liberal Democrat councillors up and down the country have a strong record in community engagement and delivering good quality, value for money local public services to respond to local need.
7. The Government's levelling-up funding is an inefficient way to support local initiatives and undermines local decision-making and democracy.

Conference resolves to:

1. Support the LGA's 'Make It Local' campaign, which outlines how local government is key to delivering solutions to the biggest issues for the public.
2. Argue for the next Government to put in place proper long term funding of local government and, as a matter of urgency, to close the £4 billion funding gap.
3. Support policies to build a consensus on long-term funding of social care.

Applicability: England only.

Motion prior to amendment

Conference notes:

1. That the Local Government Association (LGA) estimates that councils in England have a funding gap of œ4 billion over the next two years.
2. One in five English local authorities are in danger of issuing a Section 114 notice this year or next.
3. Half of English councils are not confident that they have the money to fulfil their legal duties next year.
4. Concern about funding for local authorities is cross-party.

Conference recognises similar pressures and concerns faced by councils in Scotland and Wales and calls on the Scottish and Welsh Governments to work with their councils to take action.

Conference further notes that:

1. The National Audit Office estimates that between 2010/2011 and 2021/2022 the real spending power of English councils was reduced by 29%.
2. The 2023 Autumn Spending Statement failed to address the needs of local authorities and the people they serve.
3. The older age population is increasing faster than the general population and an ageing population is increasing the complexity of the care required - the Health Foundation suggests that œ14 billion may be needed by 2030/31 to fund Adult Social Care alone.
4. The number of looked after children is 80,000 and rising.
5. Many councils in England are struggling to meet the demand for SEND support already.
6. Councils are struggling to fund the increase in the need for homeless placements and supported accommodation.
7. Councils are under increasing pressure on costs, in particular to meet inflation and rising staff costs, including the National Living Wage.

Conference believes that:

1. Local authorities play a vital role in delivering local services.
2. The current funding arrangements are unable to meet the needs of local authorities.
3. The government's approach to encourage councils to use reserves and capital receipts to subsidise their revenue expenditure is fundamentally wrong and unsustainable.
4. Most councils have reached the limits of what can be achieved by efficiency savings; further cuts can only come from core services highly valued by the communities councils serve - these are non-statutory and include leisure centres, swimming pools, many libraries, bus routes and the arts, among others.
5. If properly funded, local government can play a key role in tackling climate change and protecting our environment.
6. Liberal Democrat councillors up and down the country have a strong record in community engagement and delivering good quality, value for money local public services to respond to local need.
7. The Government's levelling-up funding is an inefficient way to support local initiatives and undermines local decision-making and democracy.

Conference resolves to:

1. Support the LGA's 'Make It Local' campaign, which outlines how local government is key to delivering solutions to the biggest issues for the public.
2. Argue for the next Government to put in place proper long term funding of local government and, as a matter of urgency, to close the £4 billion funding gap.
3. Support policies to build a consensus on long-term funding of social care.

Applicability: England only.

Amendments

The FCC has agreed to make the following drafting amendment to the motion:

In c) (line 36), after 'leisure centres,' insert 'swimming pools,'.

Amendment One

PASSED

Submitted by: Sheffield
Mover: Andrew Sangar.
Summation: Joe Otten.

After v) (line 25), insert:

vi)    Councils are struggling to fund the increase in the need for homeless placements and supported accommodation.

After b) (line 32), insert:

c)     The government's approach to encourage councils to use reserves and capital receipts to subsidise their revenue expenditure is fundamentally wrong and unsustainable.

After e) (line 42), insert:

f)     Liberal Democrat councillors up and down the country have a strong record in community engagement and delivering good quality, value for money local public services to respond to local need.