The report, conducted by the Institute for Fiscal Studies (IFS), examines how councils’ spending has fluctuated across England since the coalition came to power. It also reveals how these cuts have impacted upon local authority services such as social care, transport, housing and environmental services.
The research found that local authorities’ spending per head plummeted by 23.4 percent between 2009/10 and 2014/15.
Under the coalition’s austerity program, the vast majority of government departments were hit with drastic spending cuts. However, the protected sectors of health, education and international development were an exception to this trend.
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Although council budgets have been dramatically reduced since 2010, cuts to local authorities were not distributed evenly across the UK, the IFS report suggests.
The think tank’s research reveals that London boroughs, the northwest and the northeast have been burdened with the most crippling cuts to spending per head across the state.
The think tank predicts additional cuts scheduled for 2015/16 will largely focus on the very areas that have been hardest hit since 2010. Its report reveals London boroughs will be confronted with cuts of 6.3 percent over the next 12 months, while shire counties face cuts of a more moderate 1.9 percent.
The think tank warns further cuts implemented in the next parliament will likely target the same areas again unless a dramatic policy shift occurs.
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— The Independent (@Independent) March 6, 2015
David Innes, a research economist and co-author of the report, acknowledged local authorities across the nation have been exposed to government cuts since 2010.
He argued the most deprived councils characterized by the most rapid population growth have been blighted by the most extensive cuts on a per-head basis.
“Further cuts are likely to come in the next parliament and they could well be focused on many of the same local authorities if the current mechanism for allocating funds is retained,” he said.
At present, Britons are midway through a nine-year austerity plan spearheaded by Chancellor George Osborne, with non-protected government departments lined up to face even deeper cuts if the Conservative Party returns to power in May 2015.
Conservative MP for Keighly in West Yorkshire, Kris Hopkins, says the government has issued a “fair settlement” to each part of the nation.
He told the Financial Times councils have “continued to balance their budgets,” and maintain “public satisfaction” under the government’s austerity agenda.
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— PeoplesAssemblySEL (@PeoplesSELondon) March 6, 2015
David Sparks, the chair of Britain’s Local Government Association, rejects this position.
He told the Financial Times many basic council services such as road maintenance and libraries are in a “fragile financial position.”
He warned while councils have tried to soften the impact of the cuts, they will not continue to stand up to continued austerity of the magnitude seen since 2010.
Sparks said it is vital for the next government to address the manner in which local authorities are funded.
Rob Whiteman, chief executive of the Chartered Institute of Public Finance and Accountancy, said the IFS findings back its demand for reform.
Whiteman stressed an independent body should be set up to allocate council spending in a “fair, evidence-based and transparent way.”
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