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English councils facing £5.8bn shortfall, LGA warns | English councils facing £5.8bn shortfall, LGA warns |
(about 7 hours later) | |
Councils in England have said they are facing a £5.8bn shortfall over the next two years. | Councils in England have said they are facing a £5.8bn shortfall over the next two years. |
The Local Government Association (LGA) has predicted a widening funding gap as the cost of elderly care takes up a growing share of council budgets. | The Local Government Association (LGA) has predicted a widening funding gap as the cost of elderly care takes up a growing share of council budgets. |
And it said there was now a "once in a generation" chance to steer the social care system "away from financial ruin". | And it said there was now a "once in a generation" chance to steer the social care system "away from financial ruin". |
Local Government Minister Brandon Lewis said the LGA claims were "doom laden and alarmist". | |
BBC local government correspondent Mike Sergeant said councils had "predicted multi-billion pound shortfalls before" and had so far managed to "balance their budgets". | BBC local government correspondent Mike Sergeant said councils had "predicted multi-billion pound shortfalls before" and had so far managed to "balance their budgets". |
'Catastrophic' | 'Catastrophic' |
He said this had been done by making cost savings, but there had been some impact on services. | He said this had been done by making cost savings, but there had been some impact on services. |
But he said this warning was perhaps the "strongest ever" from LGA chair Sir Merrick Cockell, who said council finances were "on a knife edge". | But he said this warning was perhaps the "strongest ever" from LGA chair Sir Merrick Cockell, who said council finances were "on a knife edge". |
Sir Merrick also said the next year would be a "make or break moment for adult social care, local services and the NHS". | Sir Merrick also said the next year would be a "make or break moment for adult social care, local services and the NHS". |
He also criticised what he called a "vicious cycle of overspending on a broken system", calling instead for the NHS, councils and the government to provide a better, joined-up service for older people. | He also criticised what he called a "vicious cycle of overspending on a broken system", calling instead for the NHS, councils and the government to provide a better, joined-up service for older people. |
"Failure to get this right would be catastrophic," Sir Merrick added. | "Failure to get this right would be catastrophic," Sir Merrick added. |
Cuts in government grants have hit council budgets, and the pay of many public sector workers has been affected. | Cuts in government grants have hit council budgets, and the pay of many public sector workers has been affected. |
Members of several major unions - including council workers, school support staff and teachers - have voted to strike on 10 July. | Members of several major unions - including council workers, school support staff and teachers - have voted to strike on 10 July. |
'Sensible savings' | |
Mr Lewis said the LGA's claims lacked credibility. | |
"Councils are balancing their books each year and, as the LGA's own research shows, the public now thinks they are delivering better services than before," he said. | |
"All the main political parties now agree that public spending is going to remain constrained well into the future. Councils account for a quarter of all public spending so they must continue to play their part reducing the deficit. | |
"This means councils must all make that extra effort to spend taxpayers' hard-earned cash ever more wisely. | |
"There is significant scope for councils to make sensible savings and cut waste by tackling the £2bn a year of council tax left uncollected, the £2bn ignored or lost from fraud, the £2.4bn of surplus properties left dormant and the £19bn piled-up in reserves." |
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