CYP Now - Councils criticise government over 'real-terms funding cut'

Concerns have been raised about the ability of local authority children's services to meet escalating demand, after the government announced that councils' spending power is to rise by only 1.5 per cent next year, around half the level of inflation - the equivalent of a real-terms funding cut.

The government's local government finance settlement for 2018/19 will mean that the money available to councils to spend will rise from £44.27bn to £44.93bn.

This 1.5 per cent rise is half the current consumer price inflation figure of 3.1 per cent and is based on all councils raising their council tax by 2.99 per cent - the revised figure for the amount councils can increase the tax without the need for public approval via a local referendum.

In announcing the settlement, communities secretary Sajid Javid said the government had raised the referendum threshold from its current level of 1.99 to give councils freedom to relieve financial pressures in areas such as children's social care.

Government statistics published earlier this month show that total spending on children and young people's services increased by £41.3m, from £9.14bn in 2015/16 to £9.18bn in 2016/17.

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