Top councillors on Bath & North East Somerset Council have branded the government’s “good news” for councils as a “slap in the face” and said it leaves them £187,000 worse off than they had expected.
The Guildhall in Bath
Michael Gove, the secretary of state for levelling up, housing, and communities, announced a £64bn funding package for councils in the next financial year on Monday 18th December, a 6.5% increase on last year.
Minister for Local Government Simon Hoare said: “It is good news for our local government sector that we are presenting an above-inflation increase in funding.
“We are, and will, continue to work alongside councils to ensure quality and reliable services are provided to those who need and use them, while also keeping a weather eye on ensuring value for the taxpayer.”
But, in a furious statement, the Liberal Democrat group who run Bath & North East Somerset Council said that the announcement had left them £187,000 worse off than they had expected to be.
Council leader Kevin Guy said: “There is no new money in funding announced by Michael Gove. These were funds that were already allocated.”
He added: “Central government has starved local authorities of funding for many years now. This chronic lack of funding, compounded by severe cost and demand pressures, means that local authorities up and down the country are facing severe financial difficulties.”
The council is already identifying cuts, savings, and new charges to fill the £24.5m black hole in its budget for the next year that it already has, including cuts to its non-statutory social care provision and the opening hours of recycling centres, as well as a council tax increase of the maximum 4.99% and an end to free parking in Midsomer Norton and Radstock.
Local government makes money from several streams, such as council tax, parking and traffic fines, rent from properties it owns and, in Bath, tickets to council-owned attractions such as the Roman Baths. But funding from central government also remains a major source of income.
Council cabinet member for resources Mark Elliott branded the announcement “a slap in the face”.
He said: “I am bitterly disappointed that the government has not provided urgently needed, substantial new funding for local services in 2024/25 despite the fact that like every other council we are having to dig deep to meet this challenge.
“Not only is there no new money in the secretary of state’s announcement, but the settlement has actually left the council worse off than we expected by £187k”
He added that the revenue support grant, which the council receives from the government to fund general revenue spending, had dropped from £31m ten years ago to just £800k in the current financial year.
Bath’s Liberal Democrat MP Wera Hobhouse added: “The vital services provided by local government are absolutely essential to our communities.
“This Conservative government is making it more and more challenging for local authorities to deliver for their residents.”
She said: “We urgently need a general election.”
Mr Gove said: “Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve.
“We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up.”
John Wimperis, Local Democracy Reporter
