How the council funding crisis could affect our future

The local authority funding gap has been so widely reported that many people have simply accepted that cuts are essential and focus on fighting for front-line services. But behind the headlines, important long-term plans are also at stake – and we need to consider how to protect them.

Serious issues

Over the past nine months a range of local projects, set up to address some of the most pressing long-term concerns facing communities, have been cancelled. Environmental issues are an excellent example. Recent research found that the rollout of charge points for electric vehicles has stalled, largely because councils are cash-strapped. Even existing transport networks are suffering: almost half of the bus services in England are at risk due to a lack of funding. Large infrastructure projects, like the proposed new bridges over the River Orwell in Ipswich, are also being cancelled.

Home building is another area where the council funding crisis will have an ongoing impact. While the government has removed the borrowing cap so that councils can secure finances to build homes, increasing debt is never the answer, which is why 92% of councils say more government funding is needed if they are to have any chance of meeting demand from aspiring homeowners.

Long-term costs

While issues like climate change or housing shortages can seem less pressing, continual cuts in these areas can often end up costing more money in the long run. For example, a crumbling infrastructure makes it difficult for people to commute, and businesses to trade. A lack of buses can isolate communities, risking livelihoods.

Even small decisions can have a big impact. Cutting health initiatives to support people living with autism or dementia, for example, could lead to complications that will involve greater cost to the NHS or social services further down the line. And the same applies for work in unemployment or crime prevention. Everything has a potential knock-on effect.

Finding solutions

So it's vital that we listen to councils when they call for funding and take heed of the numerous independent reports backing up their claims of long-term damage. But it’s equally important that councils find alternatives to cutbacks when trying to balance the books.

One such alternative is making a clear, concerted effort to recoup unpaid debt, including through enforcement agents. A record number of taxpayers are in arrears, Stafford council has just written off £130,000 of unpaid business and council tax, while in Wales £32m of unpaid council tax has been written off in five years. We don’t advocate blindly chasing every debt, I’ve already spoken about the importance of understanding the circumstances of debt, but now more than ever it’s necessary to ensure that those who can pay do pay. The knock-on effects of non-payment are too great.

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