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27th October 2021

Solace statement on Spending Review 2021

In response to the 2021 Budget and Spending Review, Martin Reeves, Solace spokesperson for Local Government Finance, said: “Solace has long called for sufficiency and certainty so an extra investment of £4.8bn in local government over three years is, on the face of it, welcome.

“This significant shift in spending shows the Chancellor has recognised the critical part local government has played in responding to the pandemic, as well as demonstrating an understanding of the key role councils will perform in the recovery from it too.

“However, demand for the vital services our people and places depend on is rapidly rising with predictions an extra £8bn will be needed by 2024/25 just to maintain services at today’s levels, so it is disappointing that today’s announcement falls far short of what is required.

“While the extra funding will go some way to stabilising local government’s broken finance system, there will be a limit on what councils can do to help create stronger, greener and fairer places across the country.

“Solace will continue to make the case for a fundamental reimagination of the way the sector is funded, while also urging the Government to urgently address the growing workforce capacity and capability crisis facing councils – a failure to address that will severely hinder our ability to deliver the world class public services we all want to see.”