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CIPFA responds to Budget 2018

30-10-2018

Commenting on the Chancellor’s 2018 Budget, CIPFA’s Chief Executive Rob Whiteman said:

“It is something of a ‘trick or treat’ budget for local government, which needs access to new revenue sources to be at all sustainable. 

“While short-term support for social care of £650m, £45m for disabled facilities, and £420m for road repairs are welcome, it remains the case that under these proposals councils will continue to face many of the same challenges they did before the Chancellor rose to his feet. The long-term challenges are greater than the short-term ones for local authorities, and the CSR prospects remain bleaker for many public services, and notably so for local government. 

“Lower paid workers in the UK will certainly appreciate the higher minimum wage, however it will be the likes of local authorities and social care providers once again picking up the tab for that.

“The raising of the basic rate of income tax, higher rate threshold and lower alcohol duties will no doubt be welcomed down the pub. However the OBR’s July 2018 projections on which this budget is based, forecast that within 50 years, at current levels of taxation, the UK will not be able to afford anything more than debt interest, health, social care and pension payments. The issue remains therefore that there is simply not enough cash to sustain the expectations of public services at the current levels of taxation."

ENDS

For further information please contact the CIPFA press office on T: 020 7543 5703 or E: Liam.Macandrew@cipfa.org 

About CIPFA 

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.