PA’s David Rees, head of local government, is quoted in an article in The MJ, on the spending review. The article looks at the Chancellor George Osborne’s vision of public spending over the next five years and cuts for local government.
David comments on fears about cuts to mirroring concerns that councils are likely to face fresh challenges towards the decade’s end as a results of greater financial freedom. David says that the move could bring further uncertainty over funding.
“The realities are that while the Government predicts that locally generated income, such as council tax and business rates, will increase by £6.3bn, we’re also seeing a significant reduction in central government grant to local authorities,” says David.
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David goes on to say: “For councils, the challenge is matching up the certainty of the cuts they face with the uncertainty about how much income they will be able to raise locally.
“There could also be unintended consequences from the increased taxation freedoms, not least that some areas will prosper at the expense of others.”