Image: Steve Forrest/Workers’ photos
On Monday morning, local government (LG) conference in Brighton turned its attention to the perilous state of council finances, funding and cuts.
The context for the debates which followed was set by Paul Bell, UNISON national officer, who moved sections of the LG annual report dealing with finance and service delivery.
“This past year has presented us with the toughest financial challenges local government has faced since austerity began in 2010,” said Mr Bell. “Despite these difficulties, we have remained steadfast in our mission: to campaign tirelessly for increased local government funding and to combat the cuts that threaten our communities.
In September, UNISON unveiled research that showed a staggering funding shortfall. Councils across England, Wales and Scotland face a collective deficit exceeding £3.5 billion for the financial year 2024/25, rising to over £7 billion by 2025/26.
Off the back of those deficit figures, he said: “Reports from various organisations paint a bleak picture. The Local Government Information Unit warns that one in ten councils in England might declare bankruptcy within the next twelve months.”
Image: Steve Forrest/Workers’ photos
Funding and cuts
Conference then began business with a set of motions on funding, finance and cuts.
Chair of the service group executive Glen Williams (pictured above) moved a composite motion calling for an end to the collapse of local government and to renew the call for fair funding to the new government after July 4.
He lambasted the situation that local government funding and finance has been left in after 14 years of Conservative government. “Levelling up has actually meant cutting down. Imagine being told to have a financial plan for the next five years but only being told at the start of each single year how much money you will be getting.”
Linda Boyer from the north west region continued the debate saying: “Significant cuts and asset sales have become the norm, but still the books don’t balance and scores of town halls face the threat of effective bankruptcy.”
One of the councils forced to the brink of bankruptcy, which has now put in a section 114 notice, is Birmingham. Kamal Yusuf from the Birmingham local government branch spoke on the issue saying the council has had “a constant barrage over the last 14 years of cuts to funding.”
Mr Yusuf said: “In 2010 Birmingham employed over 24,000 non-teaching staff, it now has under 10,000.”
The plight of Birmingham council was a key topic at a fringe meeting at the conference titled ‘the funding crisis in local government’. There, Mandy Buckley, a care worker from Birmingham, spoke about the council’s section 114 notice, submitted in September, and the way it has responded to it.
“It’s shocking to see the cuts they really want to make in vulnerable services and all the staff, dedicated over the years, losing their jobs,” said Ms Buckley. “And once these services go, they will be deleted, they will vanish.”
Attendees heard that the authority wants to make a “staggering” £300m of cuts over two years and there is also intense pressure to make staff accept voluntary redundancies. “They are being pressured out,” said Ms Buckley.
Somewhere near 60 councils are expected to be in financial crisis in the next year.
Ruth Levin, senior national officer for local government speaks at the funding crisis fringe Image: Steve Forrest/Workers’ photos
Pay and funding
A motion took the themes of chronic underfunding and explored their effects on the pay of local government staff. Kevin Treweeks moved the motion for the NJC committee.
He said that “better pay is what our members need,” but added that they also understand “councils are facing s114 notices.” He drew the direct link between funding and pay and argued that the local government sector needed three things: “An immediate increase to stop the bleeding, a longer-term settlement and a fairer funding settlement so the money goes where it is needed most.”
Sean Fox noted the Work Free Friday campaign which highlights that real terms pay has dropped over 20% and argued that LG staff now “effectively work one day for free per week and conference, we all know good pay leads to good services.”
The motion set out a range of actions to ensure that the sector is ready and able to deliver strike mandates.
Cuts to domestic violence services
An example of vital services at risk from the funding crisis in local government is domestic violence services. It is not a statutory requirement, which means it is not protected from cuts.
Elizabeth Onabanjo from Brent said: “Prior to the pandemic, domestic violence services were already underfunded.”
But more recently, she added, “The government pledge of an additional £185m by 2024-25 is far short of the £409m needed annually. We must demand secure long term funding to ensure all women have access to necessary support.”
George Wheeler, a social worker from Lambeth branch said: “Underfunding leaves more and more cracks each year for children and women to fall through – we see every day the devastating effects of cuts to DV services.
“What that means in real terms is women trapped in dangerous and abusive relationships and children at risk of violence.”