What does Local Government Finance Settlement mean for Council Services?

The local government finance settlement defines the annual funding from central government to local government. It intends to support the councils providing services to the citizens. It needs the approval of House of Commons before rolling out the final settlement. For the year 2018-19, it will be laid before House of Commons in February 2018. After 2013/14, the funding to the individual councils is decided according to the 50% business rates retention system. The local government finance settlement considers various factors to govern the funding to all the councils.

Local authorities are responsible for addressing the citizen concerns. The councils provide a range of personal protective services such as adult and children’s social care, sustainable services like waste collection and disposal, highways maintenance, housing, anti-social behavior, cultural facilities, and other utilities such as environmental, coastal and flood defenses. To facilitate these services, they need adequate resources and funding. Besides that, they also need to manage their employees and wages.

In one of our recent posts, we described the impact of Chancellor’s budget 2018. The local authorities have to prepare themselves to face a funding gap of atleast £5.8 billion in two years. And, there is no new money injected by the central government to fill this gap. The provisional local government finance settlement, however, seems to give a ray of hope in certain areas. The settlement will allow the councils to increase the council tax by 1%. The government has increased the tax referendum limit from 1.99% to 2.99% for the next year. But, the 88 shire councils expect more flexibility to realise the tax limit benefits.

In addition to that, the government has included £946 million in the Core Spending Power for the New Homes Bonus (NHB) in 2018/19. It is £8 million more than tentative figures published in the last settlement. This opens significant opportunities for the councils. Furthermore, the government has indicated 75% business retention in 2020/21. Yet, the councils desire many changes in the local government finance settlement. Particularly, related to the public health and child care sector where they need to be on their toes.

The way councils carry out their duties has changed now. The citizens have become more tech-savvy and the world has gone digital. That’s why; the local councils cannot escape this technological route. On the other side, there is no assurance of receiving enough funding that will fill the gaps. In such a situation, adding automation will help the councils to save the costs and meet the budget lines. The councils must consider implementing automated solutions. This footstep will increase the revenue and ensure optimised service delivery. It is recommended that the councils use the funding to automate and digitize their working.

The councils should automate the repetitive processes that take up time and efforts. For example, they can opt for a solution that takes no time to set up and becomes a revenue-booster. The modern cloud-based solutions have made it possible for the councils to run their administration in a smooth manner. Also, such solutions promise a better experience for the citizens. It streamlines requesting services, reporting issues and communicating the voice to the authorities.

Going ahead, the councils can take help of advanced workforce management applications. The entire UK is facing the lowered productivity issues and it is the need of the hour to do something about it. Apart from motivating employees, assuring good wages, and creating a healthy work environment, the local government should encourage the use of new-age apps that drive efficiency. These apps improve coordination and help the council employees to do the actual work. Empower them to deal with citizens in a better way.

Commissioning a better future…   

It is quite a tough time for the councils. The final local government finance settlement proposal may provide a sigh of relief if the new funding is approved. But, the councils need to prepare themselves as much as they can. The use of automated platforms may not guarantee a complete end to the woes. But, it will definitely ease the work and streamline the service delivery. It will be a win-win situation for the councils and the citizens. We have worked with councils and public organisations over years. Our experience will help you to rise above the challenges of the era. So spend well, establish excellence and set a mark!