Introduction
Since 2010, the Government has reduced funding for
local government in England as part of its plan to reduce the
fiscal deficit. In real terms, the Government will reduce its
funding to local authorities by an estimated 37% over the period
2010-11 to 2015-16. The funding reductions have not hit all local
authorities equally, with reductions ranging between 5% and 40%.
Local authorities have, on the whole, responded well to the cuts
in funding. But the external auditors of local authorities have
voiced concerns over whether some authorities will continue, over
the medium term, to be financially sustainable and be able to
make further savings. This is particularly the case for authorities
responsible for adult social care and children's services. The
Department has overall responsibility for central government funding
to local authorities. However, a number of other government departments
have policy responsibility for specific duties which local authorities
are obliged to perform. At spending reviews, the Department is
also responsible for leading a cross-government assessment of
local authorities' ability to maintain statutory services while
dealing with the consequences of a funding reduction.
|
