Localis: Budget Response 2009

Author: Localis - Apr 25, 2009

The Budget took place on 22nd April. Some of the specific policies affecting local government include:

New funding for councils and partners to create up to 150,000 new jobs and funding for 50,000 traineeships for young people in the care sector
The £1bn of new money for housing, including £100m to support building by councils, is welcome though only enough to build 1-2,000 homes over two years.
The announcement of the two pilot city-regions (Greater Manchester and Leeds City Region).
The Formula Grant and Police Grant settlements will remain as announced in the three year settlement.
CSR07 efficiency target has been increased from £4.9bn to £5.5bn, with councils expected to find 4% efficiency savings in 2010-11. The additional £600m will be retained by councils to reinvest in services. Beyond CSR07, the government will seek additional £9bn per annum efficiency savings across the public sector by 2013-14.

Localis broadly welcomes the responsibility to Local Authorities recognised in the Budget, however, we think it should have gone further - placing a strategic role on Local Authorities in helping to deal with the recession and support the local economy and helping to progress a low carbon economy. Efficiency savings are a necessity, but they are also a big ask - especially given that Councils have already made significant savings to date. Statutory city regions too are potentially a positive step forward, so long as the details result in a devolution of power to local people and not regional quangos. We also think that specific duties to ensure that anybody under 25 is in a job after 12 months of unemployment is an ambitious but ultimately unrealistic target.

To see the Budget 2009 in full, please click here