Councils take £34m Government cash hit sparking funding row
Councils across the Black Country could lose more than £34 million a year as part of a review of local government spending.
The claim comes from the Labour group of the Local Government Association, which suggests a reallocation of funding, due in 2021, could see Black Country councils lose out to authorities in wealthier areas.
However, the claims have been described as "scaremongering" by senior Tories in the West Midlands, who insist the Government is committed to delivering for all communities across the country.
How your council could fare
According to the analysis, Sandwell Council could be one of the hardest hit in the country, losing £15.8m a year, a fall of 15 per cent.
Wolverhampton is set to lose £7.4m, a near 10 per cent fall, while Walsall faces an eight per cent cut of £6.4m, and Dudley Council could see
Meanwhile Staffordshire is in line for a 4.5 per cent boost of more than £8.5m, while Shropshire Council's funding could rise by £2.5m (3.5 per cent).
The data models the likely effect on councils’ adult social care funding allocations from next year, using a proposed new Government methodology used to direct funds to local authorities. ]
But Communities Secretary Robert Jenrick said the figures were "speculation" and urged local councils not to "pay any heed to them".
His fellow Cabinet Minister Gavin Williamson has also questioned the data.
The Education Secretary said: "The Prime Minister has brought in a whole agenda about levelling up across the country, and it is disappointing to see these elements of scaremongering going on.
"We are seeing huge investment in education, in the health service and police, as well as a 4.4 per cent increase in spending power for councils as part of the local government settlement.
"We have made it clear that the focus of this government is to deliver the very best for every community across the country."
An LGA spokesperson said: "This analysis does not represent LGA policy, an LGA policy proposal or an LGA preference.
"It is an attempt to provide some information to councils that might help gauge the likely impact of the fair funding review on the relative distribution of adult social care funding."
A Government spokesman said: "We will continue to progress the fair funding review through close collaboration and engagement with the local government sector, and aim to publish a consultation with indicative allocations in spring 2020.
"Councils should continue to use official government data for their financial planning."
Councils across the Black Country could lose more than £34 million a year as part of a review of local government spending.
The claim comes from the Labour group of the Local Government Association, which suggests a reallocation of funding, due in 2021, could see Black Country councils lose out to authorities in wealthier areas.
However, the claims have been described as “scaremongering” by senior Tories in the West Midlands, who insist the Government is committed to delivering for all communities across the country.
According to the analysis, Sandwell Council could be one of the hardest hit in the country, losing £15.8m a year, a fall of 15 per cent. Wolverhampton is set to lose £7.4m, a near 10 per cent fall, while Walsall faces an eight per cent cut of £6.4m, and Dudley Council could see £4.5m disappear from its budget, a 5.5 per cent drop.
Meanwhile Staffordshire is in line for a 4.5 per cent boost of more than £8.5m, while Shropshire Council’s funding could rise by £2.5m (3.5 per cent).
The data models the likely effect on councils’ adult social care funding allocations from next year, using a proposed new Government methodology used to direct funds to local authorities. ]
But Communities Secretary Robert Jenrick said the figures were “speculation” and urged local councils not to “pay any heed to them”.
His fellow Cabinet Minister Gavin Williamson has also questioned the data.
The Education Secretary said: “The Prime Minister has brought in a whole agenda about levelling up across the country, and it is disappointing to see these elements of scaremongering going on.
“We are seeing huge investment in education, in the health service and police, as well as a 4.4 per cent increase in spending power for councils as part of the local government settlement.
“We have made it clear that the focus of this government is to deliver the very best for every community across the country.”
An LGA spokesperson said: “This analysis does not represent LGA policy, an LGA policy proposal or an LGA preference. It is an attempt to provide some information to councils that might help gauge the likely impact of the fair funding review on the relative distribution of adult social care funding.”
A Government spokesman said: “We will continue to progress the fair funding review through close collaboration and engagement with the local government sector, and aim to publish a consultation with indicative allocations in spring 2020.
“Councils should continue to use official government data for their financial planning.”
Some local authorities have raised concerns about the potential impact of cuts.
Telford and Wrekin Council, which is set to lose £2.5m a year according to the analysis, says it could be forced to make further cuts to council services or a further council tax increase equivalent to 3.7 per cent.
Councillor Lee Carter, cabinet member for finance at the Labour-run authority, said: “The LGA’s research is deeply worrying for councils like us who are already having to greatly increasing funding for social care after years of continuous cuts.
“I will be urging our two MPs to work together with us and push the case for fair funding for the borough and proper funding for social care that reflects our needs rather than shifting resources away to more affluent areas of the country.”
