ESSENTIAL services remain under threat after the Chancellor’s Spending Review “offered nothing like enough for local government,” the leader of St Helens Council has warned.
Rishi Sunak said the Spending Review “delivers on the priorities of the British people”, as he outlined the government’s spending plans for the coming year.
Speaking in the House of Commons this afternoon, Mr Sunak said the government would spend £280 billion this year “to get our country through coronavirus”.
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He said public services funding to tackle coronavirus will total £55 billion – but also warned that 2.6 million people could find themselves unemployed by mid-2021.
Councils will receive more than £3 billion, with the Chancellor saying today’s settlement will allow local authorities to increase core spending power by 4.5 per cent.
Local authorities have been given the green light to raise council tax, with any hikes above 2 per cent requiring a local referendum.
This means St Helens will almost certainly see a council tax rise of 4.99 per cent next year, which includes a 3 per cent adult social care precept.
The Chancellor also confirmed the additional £1 billion social care grant it provided this year will be maintained into next year.
None of this will be enough to stop potential cuts to services locally, however, according to St Helens Borough Council leader David Baines.
He warned that libraries, leisure services, children’s centres, waste services and highways maintenance are all under threat.
“Looking at the headlines of the Chancellor’s budget statement, I’m devastated to say it looks as if he has offered nothing like enough for local government,” Cllr Baines said.
“The only funding increase for councils appears to be through a hike in council tax.
“Using this to fund essential services only punishes local residents already under pressure.”
Last month, the council sent a cross-party letter to the government warning that a projected £20.4 million funding gap for 2021-22 “threatens every essential frontline service we provide”.
The letter, which was sent to Communities Secretary Robert Jenrick and Mr Sunak, was signed by the leaders of all parties on the council and St Helens’ two MPs.
The government has yet to respond.
Here is the letter in full.
Speaking on Twitter following today’s announcement, Cllr Baines said the council is currently working on “drastic” proposals to cut £20 million.
The Labour council leader warned essential services “won’t look the same afterwards”.
“We have a £20 million budget gap for 2021-22 in St Helens,” Cllr Baines said.
“Libraries, leisure services, children’s centres, waste and recycling, highways maintenance and more, are all under threat.
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“Even if we do raise council tax by the maximum amount allowed, our funding gap threatens job losses, closures and cuts to services that thousands of us rely on.
“On first look, the Chancellor has done nothing to help protect those services.
“He’s turned his back on the keyworkers who provide them, and the people who need them most.”
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