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MPs say government in denial over state of council finances

06 February 2019

Local authority finances worse despite greater demand for vital services.

Read latest Public Accounts Committee report on Local Government Spending

Overall spending by local authorities on services fell by 19.2% in real terms between 2010-11 and 2016-17. The Government’s response to this is to provide a short-term cash fix.

By not providing a long-term solution many councils are forced to overspend on social care and reduce key services whilst raiding their financial reserves and relying on risky ways of raising other sources of income.

The Government refuses to provide the evidence that this situation is sustainable and has rejected the Committee’s recommendations on this issue in the past.