SIGOMA responds to the settlement
Posted on December 19, 2023
Responding to the provisional finance settlement for local government, Cllr Sir Stephen Houghton, Chair of the Special interest Group of Municipal Authorities (SIGOMA) said:
Today’s funding increase will not match inflationary and demand-led pressures. In our letter to the PM, we warned that half of the increase comes from assumed council tax increases which are regressive and raise funding in a way unrelated to need. There is nothing new to address the funding pressures in children’s services, the biggest pressure our members currently face. Council finances will remain on a knife-edge until funding levels are returned to a sustainable level and the distribution is fairer, fully recognising need. The final settlement in late January is now the Government’s last opportunity to provide councils with the funding and flexibility they need to stabilise their finances. If this is not done then there will be a surge of Section 114s next year.