Council calls for funding reforms

East Herts District Council has backed calls by the Local Government Association for changes to the way local authorities are funded.

The LGA is calling on Central Government to provide adequate, longer-term funding for Local Authorities which would give them long-term financial certainty and sustainability in the provision of services. The Association says that there should be an end to the proliferation of different funding pots and to the competitive bidding for grant funding.

At a meeting of the Full Council last month, members backed a motion by Cllr Mione Goldspink, the authority's Liberal Democrat deputy leader, to support the LGAs calls.

Councillor Eric Buckmaster said it was appropriate to support the motion and said the financial challenge was even more difficult at the county council where there was a £6.2 billion funding gap in social care.

Leader of the Conservative Group at the district council, Cllr Bob Deering, said he strongly supported the motion as he was responsible for finances at Hertfordshire County Council, and it was an extremely challenging situation. He encouraged the new government to come up with more funding for local government.

Cllr Alex Daar said the council often received different pots of money and it was a lot more work to make efficient use of it.

The council will write to the LGA Senior Vice-Chairman, and also to the government’s Secretary of State for Housing, Communities and Local Government and to the four local MPs expressing their views.

The full motion backed by the councillors reads:

This Council recognises that Local Government nationally is facing a £6.2 Billion funding gap over the next 2 years, and this will have a big impact on the financial situation in East Herts.

This council also notes that Central government relies on Local government to provide essential community services – like collecting rubbish bins, cleaning the streets, providing new homes, providing social care and much more.

It is clear that a much better relationship is needed between Central and Local Governments, - one which would provide long-term financial certainty and confidence for Local Authorities.

This Council further notes that the Local Government Association, (LGA) of which this Council is a member, published on7 June 2024 a Local Government White Paper on funding reform and also on improving the relationship between Central and Local government. The paper sets out 6 of the Challenges which are facing the country at the moment, and which are all relevant to the residents of East Herts District. They are :- Delivering Inclusive Financial Growth, Building the Homes we need, Supporting our Children and Young People, Reforming and Sustainably Funding Social care, Supporting Place- making, and Backing Local Climate Action. In this paper it makes detailed proposals about the actions which could be taken to tackle these challenges.

The LGA is calling on Central Government to provide adequate, longer-term funding for Local Authorities which would give them long-term financial certainty and sustainability in the provision of services. There should be an end to the proliferation of different funding pots and to the competitive bidding for grant funding.

This Council resolves to express its strong support for this White Paper. This Council also calls on our new central Government to respond positively to the White Paper, and to demonstrate this by providing adequate, long-term funding for all Local Authorities.