England & Wales Press Releases

LGIU Response – nearly 20 councils granted exceptional financial support

LGIU Response – nearly 20 councils granted exceptional financial support

Jonathan Carr-West, Chief Executive, LGIU, said: “It’s good to see the Government finally recognising the scale and severity of the financial crisis in local government that so many of us have been warning of for years. This comes only a day after our research revealed that half the councils in England are seriously concerned about their financial viability in the next five years if nothing changes.

“We know how desperate these councils were to receive this exceptional support. For them, it is a last-minute reprieve that wards off immediate financial collapse. On that basis it is welcome news. But we should not mistake this for generosity on the part of the Government. They are simply allowing councils to borrow and to sell their own assets. We should not mistake today’s announcement for a sustainable long-term solution to local government funding. Increased debt and selling off the family silver will only get us so far.”

ENDS