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Local authority budgeted spending for 2012-13 has fallen to below 2007-08 levels. This is equivalent to a reduction of £238 per person from a peak of £2,052 per person two years ago in 2010-11 to £1,814 today.
The data, compiled by the Department for Communities and Local Government (CLG) and the Chartered Institute of Public Finance and Accountancy (CIPFA), shows that Overall Total Service Expenditure by local authorities in England is estimated to fall by 4.8 per cent this year to £94.7bn. Last year, spending fell by 5.7% to £99.5bn.
Education will see the largest budgeted reduction in spending at 8.6% and is the only spending area that expects higher reductions in 2012-13 than in 2011-12. This figure is influenced by the reallocation of resources owing to academies which are funded outside local government.
Social care is the only area expected to see successive annual increases in spend, which despite significant efficiency savings are still subject to unavoidable budgetary pressures including an ageing population.
The figures also show variations in average regional budgeted spending by councils. Local authorities in the East Midlands (-7.5%), South West (-7.1%) and East of England (-7.0%) are, on average, reducing their spending the most while councils in Yorkshire and the Humber (-2.9%) and Greater London (-3.3%) are reducing theirs the least.
Alison Scott, CIPFA’s local government policy lead, said:
“These statistics illustrate the changing nature of local council services as a result of spending cuts coupled with changes in how services are provided such as the academies programme. As cuts and service transformation continue to bite the balance of council services will continue to change.”
Contact: Tim Windle
CIPFA Press Office
t 020 7543 5787
Notes to Editors:
Table 1: Total Service Expenditure, England
2010-11 to 2011-12
2011-12 to 2012-13
Highways & Transport
Cultural & Related
Environmental & Regulatory
Planning & Development
* Compares 2011-12 line 390 with 2012-13 lines 329 and 390. (Social care measurement was split into adult and children’s care for 2012-13).
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services. This includes the development of local professional qualifications in African countries like Lesotho and Nigeria and in Europe in post conflict states in the Balkans.