Solace survey predicts the impact of Autumn statement on residents

A survey conducted by local government chief executive membership body Solace has found that nearly nine in ten (87 per cent) council Chief Executives and senior managers think that the Autumn Statement will have a negative or extremely negative impact on their residents.

The survey also asked about the economic ramifications of the Autumn Statement and found that three quarters (74 per cent) of Chief Executives and senior managers saying that they expected the impact on local businesses will be negative or extremely negative.

Solace surveyed members over the 24 hours immediately following the Autumn Statement and received 174 responses, including 69 council Chief Executives, 85 Senior Directors/Managers, 14 early career and 2 who identified their job description as ‘other’. 40 per cent thought that the Autumn Statement has made their financial positions either worse or much worse - double the number who reported a positive impact.

Solace also asked their members facing a funding gap which services were likely to be cut, with the top three answers being environmental services (75 per cent); libraries, leisure and tourism (67 per cent); and regeneration (50 per cent). Other service areas in line for cuts include adult social care (44 per cent); transport (38 per cent); children’s services (37 per cent); housing (33 per cent) and public health (28 per cent).

According to the Institute for Fiscal Studies, the local government funding gap for 2023/24 stands at £3.4 billion and was forecast to be £4.5 billion in 2024/25 prior to the Autumn Statement.

Patrick Melia, Solace spokesperson for finance and Chief Executive and Sunderland City Council, said:

“This survey makes for alarming reading. It is clear that our members in councils across the country were already grappling with hugely challenging financial pressures, in part due to the huge increases in the cost of all manner of core goods and services, as well as the ongoing increased demand for services, amounting to a real terms funding shortfall into the billions across the sector. Trying to respond to these pressures through regressive council tax or use of reserves is simply not sustainable, as this survey shows.

“Clearly these are difficult times for our country and for our residents. And while the additional funding announced yesterday for adult social care is welcome and will help to alleviate that specific pressure, it remains insufficient. We are seeing now the consequences of local government being underfunded for many years.

“The upshot is that basic service provision will inevitably suffer, with negative consequences for millions of residents. The number of councils considering cuts to children’s services, adult social care and public health are especially concerning, considering that this will inevitably hit prevention work, with knock-on increases in demand and cost for other areas of the public sector, especially the NHS, in years to come.

“And the impact on our vulnerable communities will only further be compounded by the struggles facing the voluntary and community sector, which is also grappling with both increased costs and service demand that councils are increasingly unable to provide sufficient support to deal with.

“I am also concerned that, while already in the teeth of a recession, Solace members expect the Chancellor’s announcements yesterday to weaken local economies up and down the country, and so delay recovery in the national economy.

“This is not helped by the reduction in overall capital spend, which the levelling up fund only partially addresses, which I fear will raise public expectations of investment that isn’t coming, while the basic fabric of the public realm deteriorates.

“Local government has a vital role to play in steering our communities and local economies through the multiple ongoing crises, especially as we head into recession. And we stand ready to deliver for our communities and places, as we did during the COVID-19 pandemic.

“But without the right financial support, councils will be unable to successfully fulfil those crucial roles and the nation’s recovery will be severely undermined.”