Cllr Houghton 2

Local leadership is the solution

Posted on October 04, 2024

If one thing has become clear from the Labour Party Conference, it will have been the party's focus on the local. Stronger communities, more housing and hospitals, thriving town centres, tackling fuel poverty and a better NHS – none of it possible without local leadership.

All eyes will now turn to the Budget at the end of October. Ambitions of the government depend on what can be offered to local government.

We, in the sector, know the challenges facing local government so also refreshing was recognition from ministers at conference of those challenges. The chancellor recognised that austerity had been ‘destructive' for public services. A lack of social housing, the poor state of adult social care, and a crisis in children's social care were all also recognised in speeches.

And the solution they offered was the local. Local government has the knowledge and the will to improve public services, see a net increase in social housing, end fuel poverty, ensure children and adults have the support they need, and, importantly for the government's plans, drive economic growth. But right now, we lack the resource to achieve as successfully as we know we can.

Ministers are making the right noises. Promises have been made that there will be no return to austerity. There has been recognition that the local government finance system is broken, and a commitment to redistribution and a multi-year settlement.

But hard truths remain: the Prime Minister and chancellor both spoke of the tough decisions and trade-offs that remain. Local government waits anxiously. It has felt like far too often local government has fallen on the wrong side of those trades. All this has resulted in is local government having to make their own hard choices which have only worked to contribute to our current situation.

All eyes will now turn to the Budget at the end of October. Ambitions of the government depend on what can be offered to local government.

The system needs more money. There is much talk of the Government's £22bn black hole but what of local government's £6.2bn black hole. With additional funding, local authorities will be pulled back from the brink of Section 114s. Local authorities will be able to stop treading water and be in a position to use their local knowledge and skills to implement innovative solutions to local challenges such as poor health or high levels of unemployment.

A redistribution of funding, targeted towards areas with the greatest need, is long overdue. With the right funding, local authorities representing the most deprived areas will have the resources to improve the life chances and opportunities for their residents. Funding that follows need will help curb rising demand for services, assist in breaking down the barriers to opportunity and reduce inequality nationally.

The sector's fight for long-term and certain funding appears to be won. With long-term, certain and flexible funding, local authorities will be more resilient and better able to plan for the future. Preventative services will benefit from long-term funding certainty, and with additional funding will help reduce demand in the future as more residents are able to get support before crisis hits.

The role of local government in our communities cannot be overstated. The Deputy Prime Minister has recognised this by putting local government back in the heart of her department and Labour's focus on the local is further confidence.

Local government stand ready to rise to the occasion of rebuilding public services, delivering more social housing and securing economic growth. But we can't do it alone. It's crucial that the government backs up its words with action, ensuring local government has the tools needed to deliver for their communities.

Cllr Sir Stephen Houghton is chair of the Special Interest Group of Municipal Authorities (SIGOMA)

Read the article in full, here.