Local Government Association responds to Chancellor's 2022 Spring Statement - says pressures can't be dealt with by council tax rises alone

The LGA in its statement responding to Chancellor Rishi Sunak's Spring Statement has said that "The continued model of relying on council tax raising powers to increase councils' core spending power is not sustainable or fair on local taxpayers or those who rely on council services."

Whilst "pleased" that the Government has doubled the financing behind the Household Support Fund to £1 billion with £500m of extra cash (used by councils on a discretionary basis to support vulnerable households struggling to afford daily necessities) the LGA points out that this is short term funding not a long term solution that moves away from "crisis" support.

Cllr. Shaun Davies, Chair of the LGA's Resources Board says "Local government ... continues to face significant financial challenges. Inflationary pressures, our own wage bill and energy price rises [as well as the ongoing cost of dealing with and recovering from the covid pandemic] look increasingly likely to make 2022/23 significantly more challenging for councils than initially estimated ..." when government made its spending review funding decisions. He added that councils need "urgent" clarity from government on which funding reforms will happen and when as well as what the impact of any changes will be.

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