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  • ​​​​​Local government spending down by 20% per head of the population 
  • North East, North West and London have seen the biggest drops in council funding 

  • Poorer parts of Britain have been hit harder, says TUC 

Councils in England are spending £7.8bn a year less on key local services than in 2010, according to a new TUC analysis published today (Monday). 

The TUC has looked at the impact of cuts on local government funding across England.  

In 2010/11, local authorities in England were spending a total of £49.3bn on key services such as social care, waste management, libraries and transport. 

But in 2018/2019 – following years of funding cuts from central government – that spending had fallen to £41.4bn.  

This works out to 20% (£135) less being spent on services per person in the region. 

The north and London the biggest losers 

The North East has seen the biggest reduction in council spending (-26%), followed by the North West (-21%) and North East (-20%). 

England’s biggest councils (those providing the most services) have been worst hit in Labour-controlled metropolitan areas: 

  • Salford Council (Labour) is spending 38% (£99 million) a year less on key local services than in 2010/11. That works out to £479 a year less per person. 

  • Camden Council (Labour) is spending 32% (£103 million) a year less than in 2010/11. That works out as £620 a year less per person. 

By contrast, large Conservative-controlled shire and county councils have been less affected by cuts to central government funding: 

  • Surrey Council (Conservative) is spending 7% (£54 million) a year more on key local services than in 2010/11. That works out £11 a year more per person. 

  • Wiltshire Council (Conservative) is spending 8% (£27 million) a year more on key local services than in 2010/11. That works out £16 a year more per person 

Poorer communities have been hit harder 

By targeting cuts on central government grants, ministers have disproportionately impacted councils in more deprived areas of Britain, says the TUC. 

Local councils today are increasingly reliant on raising income through council tax, their share of business rates and other charges and fees.  

But this is much harder for councils in more deprived areas of the country as they are less able to raise significant funding this way. 

TUC General Secretary Frances O’Grady said: “Ministers have slashed funding for local services across England.  

“These are services our communities really depend upon, like youth services, libraries and local transport.  

“We need a plan for healing the pain a decade of Conservative cuts have caused. That means new investment to restore council budgets back to where they were at the start of the decade.” 

Editors note

Region 

2010/11 total expenditure in 2018 prices (thousands) 

2018/19 Total service expenditure (thousands) 

Real terms change to total expenditure 2010/11 - 2018/19 (thousands) 

Total expenditure % change 

Real terms cut per capita 

% change per capita  

East Midlands 

£3,987,055 

£3,389,057 

-£597,998 

-15% 

-£95 

-19% 

East of England 

£4,182,709 

£3,588,941 

-£593,767 

-14% 

-£87 

-19% 

London 

£8,647,627 

£6,936,455 

-£1,711,172 

-20% 

-£284 

-27% 

North East  

£2,863,246 

£2,112,054 

-£751,193 

-26% 

-£306 

-28% 

North West  

£6,888,718 

£5,474,088 

-£1,414,630 

-21% 

-£180 

-23% 

South East  

£8,321,187 

£7,520,150 

-£801,037 

-10% 

-£74 

-15% 

South West  

£4,615,485 

£4,245,046 

-£370,439 

-8% 

-£78 

-13% 

West Midlands 

£5,054,887 

£4,290,876 

-£764,011 

-15% 

-£126 

-19% 

Yorkshire and The Humber  

£4,820,846 

£3,969,921 

-£850,925 

-18% 

-£167 

-20% 

ENGLAND 

£49,303,734  

 £41,441,263  

-£7,862,471 

-16% 

-£135 

-20% 

- A full list of all local authorities in England is available here: https://www.tuc.org.uk/sites/default/files/LAfundingCuts.xlsx  

Methodology:  

- These figures are based on net total expenditure outturn for 353 local authorities in England, provided in the Local authority revenue expenditure and financing: England figures for 2010/11 and 2018/19 provided by MHCLG.  

- This covers all Non-Metropolitan County Councils, Metropolitan Borough Councils, Unitary Authorities, London Boroughs and District Councils in England. Spending figures for 2010/11 have been adjusted to 2018/19 prices based on CPI.  

- It is understood that in certain specific cases there may be variance in the totals shown or the methods of recording figures between individual local authorities and the figures collated by MHCLG. These figures are taken from those presented in MHCLG data sets.  

- We have focused only on expenditure related to core local government services and those services that are comparable over the given period – we have therefore excluded education, early years, public health and police and fire services as well as spend on benefits.  

- We include spending on highways and transport, children and adults social care, housing, culture, environment, planning and central services. In addition to net total expenditure we have added NHS cash transfers to local authority social care budgets, for example through the Better Care Fund in 2018/19 and through the Valuing People Now programme in 2010/11.  

- The figures in 2018/19 relate to local authorities as they were constituted in that year – this therefore does not account for District and Unitary Authority mergers that took place in Dorset, Suffolk and Somerset in April 2019.  

- The figures also exclude the City of London and Isles of Scilly local authorities due to their unique position.  

- Upper tier authorities include all London Boroughs, Non-Metropolitan County Councils, Metropolitan Boroughs and Unitary Authorities. This excludes funding provided by transport authorities and combined authorities that are spent in local authority areas, e.g. by the Greater London Authority or Manchester Combined Authority. 

- LGA estimates about cuts to local government funding are at: www.local.gov.uk/about/news/one-three-councils-fear-funding-legal-duties-will-run-out-within-three-years

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