7.8% decrease in housing funds for councils
- 05 Aug
In a round of cuts to council spending on local services this year, housing is set to be hit the hardest.
Data that has been collected by the Department for Communities and Local Government and the Chartered Institute of Public Finance and Accountancy reveal that the total estimated expenditure on council services has been budgeted to reduce from £96.5bn to £93.5bn in 2014/14 compared to 2013, a loss of 3.1%, reports Inside Housing.
The biggest reduction in budgeted spending is to housing which will see a 7.8% funding drop with funds going from £2bn to £1.9bn. These calculations are based on budgeted figures for 2014/15 taken from the CIPFA/DCLG Revenue Account Budget Estimates return.
Funding for children's social care will rise by 16.4% to 7.7 billion in 2014/15 over the same period and public health will see an additional 5.5% in spending to £2.8 billion.
Rob Whiteman, CIPFA chief executive, said some councils were starting to face ‘real and immediate financial pressures. If we are to prevent the financial failure of vulnerable local authorities, we must recognise that some councils have been hit harder than others and will need more support. But also that there is a real and pressing need for fundamental reform of the financing of local government if we are to see it not just survive but succeed and thrive over the coming years."
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