LGA publishes Local Government White Paper, calls for reform to plug £6.2bn funding gap
The Local Government Association (LGA) has called on the next government to support equal partnership between local and national government, sufficient funding with multi-year settlements and new powers for councils to help service delivery.
It warned that, without funding reform, councils of "all political colours and types" could be in a position where they cannot meet their statutory duties.
The demands are part of a wide-reaching Local Government White Paper published today (7 June) that called for "immediate change" to tackle the sector's biggest challenges, "including better support for children, homeless families, adults who draw on care and support, and on climate change".
The white paper also pressed the government for longer-term reform and set out the following five priorities it believes could drive change:
- An equal, respectful partnership between local and national government – a genuine partnership model backed by statute, based on best international practice.
- Sufficient and sustainable funding – with multi-year settlements and combined funding pots so that local services can develop and transform.
- Backing local government as place leaders – with new powers to bring partners together to get services working better, drive inclusive growth and regulate failing markets.
- A new focus on prevention and services for the wider community – joint action with the NHS to keep people well from birth to later life, alongside action on housing and homelessness.
- Innovation and freedom from bureaucracy – ending bureaucratic reporting and exploiting the full potential of technology, including AI.
As part of the white paper, the LGA published new analysis that suggested councils in England now face a funding gap of £6.2 billion over the next two years.
According to the LGA, the shortfall is being driven by rising cost and demand pressures to provide adult social care, children's services, homelessness support and home-to-school transport for children with special educational needs and disabilities.
Without funding reform, the LGA warned that cost and demand pressures will continue to stretch council budgets to the limit in the coming years, leaving more councils of all political colours and types unable to deliver their legal duties.
The White Paper also called for the next government to commission a review of public service reform aimed at understanding how all public services can work together within their local communities.
Other proposals included providing councils and combined authorities powers to "build more affordable, good quality homes at scale, with five-year local housing deals for all areas of the country that want them.
It also called for reforms to adult social care to ensure it is better funded and ensure that councils and the NHS work better together.
Cllr Kevin Bentley, Senior Vice Chairman of the LGA, said: "A funding gap facing local services of more than £6 billion over the next two years - fuelled by rising cost and demand pressures - means a chasm will continue to grow between what people and their communities need and want from their councils and what councils can deliver."
He added: "On July 5, the next government will be faced with many challenges, whether it is building more affordable housing, improving care for adults and children, reducing homelessness, boosting inclusive growth or tackling climate change.
"Local government's offer to the next government is huge. Respect us, trust us and fund us. By working together as equal partners, we can meet the fundamental long-term challenges facing our communities."
Adam Carey
