LOCAL GOVERNMENT FINANCE SETTLEMENT 2013/14

SUMMARY

The government announced the local government finance settlement for 2013/14 in December 2012.

The settlement will see council’s in England having their spending power cut by an average of 1.7% in 2013/14. Grant is provided to ensure that no council’s spending power will fall by more than 8.8%.

However, with more spending cuts introduced and even tighter budgets being squeezed to breaking point the questions loom large over whether front line services and welfare which is provided by local authorities can be maintained at the levels and quality in which they have been provided in the past.

Given the baleful state of the public finances and the continuing likelihood of low economic growth, it is almost certain that councils face a further series of punishing settlements from now on. There may in future be incentives for councils to build up their resources by competing for NDR and council tax, but the overall direction of spending will be downwards at least until the end of the decade. And that’s if things go well.

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